The FCA’s consultation CP25/20 proposes scrapping the systematic internaliser (SI) regime for bonds, derivatives, structured-finance products and emission allowances to align with the transparency overhaul that begins on 1 December 2025.
Explaining the rationale, the consultation states that after pre-trade quote obligations were lifted, “it serves no purpose to require firms to identify themselves as SIs in these instruments”. All handbook references to non-equity SIs would therefore be deleted in concert with Treasury amendments to the underlying article 18 of UK MiFIR.
Annex 1 of the consultation paper lists the 29 questions at stake, starting with: “Do you agree with our proposal to remove the SI regime for bonds, derivatives, structured-finance products and emission allowances?”. Subsequent questions cover the linked removal of the organised trading facility (OTF) bar, the matched-principal prohibition, and the two equity-style reference-price ideas.
ESMA still obliges market participants to perform an SI test each quarter.
Read more: ESMA reports EU bonds subject to MiFID II transparency
Responses are due by 10 September 2025 with a final policy statement expected “in Q4 2025”.
©Markets Media Europe 2025
