FBF Opinion on ISD

28 February 2003




The French Banking Federation (FBF) is in favour of an open competition between regulated markets, multi trading facilities (MTFs), and internalisation of orders by investment firms, based on a number of rules.

FBF supports the adopted measures as regard to:

  • pre-trade transparency,
  • the rule by which limit orders should be transmitted to a regulated market or an MTF when they cannot be immediately executed through internalisation,
  • the disclosure obligation for a minimum order size, and
  • the formal approval from a client of the internalisation of orders.

    However, the Federation is of the opinion that intermediary should only be able to internalise up-front a limit order when there is no other available investor order which could be matched in the same conditions against the order received. Finally, FBF calls for a clarification and simplification of best execution rules.

    Full paper

    © FBF - French Banking Federation