Einde inhoudsopgave
EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/3.II.3
3.II.3 National equity pre-trade transparency obligations
mr. J.E.C. Gulyás, datum 01-02-2021
- Datum
01-02-2021
- Auteur
mr. J.E.C. Gulyás
- JCDI
JCDI:ADS267169:1
- Vakgebied(en)
Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht
Voetnoten
Voetnoten
It should be noted here that FESCO stressed that in the vast majority of Member States the ISD pre-trade transparency requirements for RMs were exceeded. This was already the case when the FESCO standards for RMs were published (FESCO, Standards for Regulated Markets Under the ISD, 1999(99-FESCO-C), p. 11).
The ISD only limited itself to appointing the necessary ‘competent authority’. A wide variety of supervisory systems and structures was in effect in place across the EEA. For a commentary, reference is made to E. Wymeersch, in G. Ferrarini (Ed.), European Securities Markets: The Investment Services Directive and Beyond, Kluwer Law International, 1998, p. 33-.
CESR, Public Consultation: Publication and Consolidation of MiFID Market Transparency Data, October 2006(CESR/06-551), p. 4.
CESR, Public Consultation: Publication and Consolidation of MiFID Market Transparency Data, October 2006(CESR/06-551), p. 4.
CESR, Public Consultation: Publication and Consolidation of MiFID Market Transparency Data, October 2006(CESR/06-551), p. 4. For a broader overview of national pre-trade transparency requirements during the ISD worldwide, including the EEA, reference is made to IOSCO, Transparency and Market Fragmentation, November 2001, p. 26-34.
CESR, Public Consultation: Publication and Consolidation of MiFID Market Transparency Data, October 2006(CESR/06-551), p. 4.
The general FESCO standards were visible in the pre-trade transparency regulations of the individual Member States.1 CESR (formal successor of FESCO) stated that in the vast majority of Member States ‘the national legislator and/or NCA2 set high level pre-trade (…) transparency obligations for RMs’.3 CESR added that the high level pre-trade transparency obligations were frequently specified in the RM rulebooks.4 In other jurisdictions, RMs imposed pre-trade transparency requirements themselves (i.e. RM rulebook), whilst the rulebook was subject to approval of the NCA.5
The specific FESCO standards with respect to the types of pre-trade data to publish, as well as calibration to the underlying trading systems used by RMs, was also visible in the national regulations. CESR noted that: ‘(…) markets that operate a central order book, prices and quantities of at least the five best bid and ask levels are continuously disseminated in a majority of Member States. For market-making models, the market makers are generally required by the exchanges to provide bid and offer prices (i.e. two way prices) at a minimum size for all stocks in which they act as market-makers.’6
The CESR statement shows that, in most Member States, RMs published pre-trade information beyond the limited pre-trade transparency obligation of the ISD.