BofA to Become MiFID II Venue for Bonds, ETFs, Derivatives
- Bank follows Goldman Sachs, Barclays in announcing MiFID plans
- Systematic internalizers offer advantages over other platforms
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Bank of America Corp. will make markets in bonds, currencies, derivatives, equities and exchange-traded funds through a new type of trading venue being ushered in by Europe’s MiFID II overhaul of financial regulations.
The bank will become a systematic internalizer, or SI, from MiFID’s Jan. 3 start date, it said in an emailed statement. Clients trading European Union securities with Bank of America’s SI will escape MiFID II’s onerous trade-reporting requirements, potentially making the SI attractive to fund managers seeking to trade bonds and off-exchange derivatives.