Regulatory Issues Stall Equiduct Italy Plan

Pan-European share trading platform Equiduct, which has been seeking to venture into the Italian market, has seen German regulators hold up its plans for more than 18 months.

Pan-European share trading platform Equiduct, which has been seeking to venture into the Italian market, has seen German regulators hold up its plans for more than 18 months, Financial Times reports. Equiduct’s initiative country is awaiting German market regulator Bafin’s approval because it involves Cassa di Compensazione e Garanzia (CC&G), the Italian clearinghouse that will clear the Italian stocks.

As per German law, Bafin is required to authorize any clearer used for trades carried out on German-regulated platforms, irrespective of its non-German location. In March 2010, Equiduct and the London Stock Exchange, owner of CC&G through its ownership of Borsa Italiana, had urged Bafin to accord approval. Equiduct is controlled by U.S. brokers Citadel Securities and Knight Capital Group.

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Financial Times Italy German European Knight Capital Group