Mandatory trading of derivatives on a trading venue
MiFID II will bring about important changes in the market structure of European capital markets. MiFID II introduces the obligation that orders in certain derivative contracts must be executed on a regulated market, an MTF or an OTF.
This is the case if these contracts fall under the clearing obligation of the EMIR legislation and have been qualified as sufficiently liquid by ESMA.
Transactions in shares that are admitted to trading on a trading venue must also be executed on a regulated market, an MTF, a systematic internaliser (SI) or a venue that is established in a non-EU Member State, but of which the supervision is regarded as equal.