As part of the OECD mandate to achieve common global standards to combat offshore tax evasion, Australia is implementing the Common Reporting Standard (CRS) from 1 July 2017. Prior to this, OTC derivatives brokers will need to determine whether they are caught by the CRS requirements. TRAction FinTech Director Sophie Gerber investigates.
Will a crackdown on PFOF stop brokers from hedging to related parties or taking a share in the book from their LPs?
PFOF triggered ESMA’s concerns on a few key MiFID II requirements, namely, best execution (Article 27), conflicts of interest (Article 23), inducements (Article 24(9)), and cost transparency (Article 24(4)). The purpose of these requirements are to protect retail investors.