EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.IV:4.IV Investment firms and client limit orders

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.IV

4.IV Investment firms and client limit orders

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS266622:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

The foregoing paragraphs examined the MiFID I pre-trade transparency rules for RMs, MTFs, and SIs. MiFID I also covered a distinct pre-trade transparency rule for investment firms authorised to execute orders on behalf of clients (including, but not only, SIs).1 MiFID I required investment firms outside RMs and MTFs to immediately publish unexecuted client limit orders2 certain shares, provided the MiFID I conditions were met.3 This MiFID I pre-trade transparency obligation was referred to as the ‘client limit order display-rule’.4

4.IV.1 Disclosure of client limit orders 4.IV.2 Concluding remarks

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In effect, the pre-trade transparency rule also applied to (systematic) internalisers. This is because (systematic) internalisers executed client orders (while trading on own account).

MiFID I defined a ‘limit order’ as an order to buy or sell a financial instrument at its specified price limit or better and for a specified size (art. 4(1)(16) MiFID I).

Art. 22(2) MiFID I.

G. Ferrarini and F. Recine, The MiFID and Internalisation, in G. Ferrarini and E. Wymeersch (Eds.), Investor Protection in Europe, Oxford University Press, 2006, p. 252.