MiFID II introduces new laws addressing various structural and other issues relating to the operation of trading venues. Market making activity on such venues will now be subject to extensive regulation. This includes a commitment by the market maker to the trading venue to make available prices for particular minimum times and to abide by various related systems and controls obligations. Trading venues will also be required to have agreements with their market makers and to ensure that any incentive arrangements are fair and non-discriminatory. There are new rules that will apply to market makers that use algorithmic trading, including high frequency trading strategies.
View full memo, MiFID II: The Regulation of Market Makers