EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/13.III.2.2:13.III.2.2 Timing

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/13.III.2.2

13.III.2.2 Timing

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS266701:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

Similar to APAs, RMs and MTFs are obliged to publish the MiFID II equity post-trade data in real-time.1 Under MiFID II the limit for real-time publication has been reduced to a maximum of one minute.2 In addition, MiFID II requires all RMs, MTFs, including their members or participants, to synchronise the business clocks they use to record the date and time of any reportable event (clock synchronisation).3 The rationale behind the MiFID II rules on clock synchronisation is to ensure that post-trade transparency can readily be part of a reliable consolidated tape.4 The MiFID II clock synchronisation rules can be read in conjunction with the time-stamping rules for APAs (see paragraph 1.4 above). The rules for RMs, MTFs, and members and participants are stricter compared to the time-stamp rules for APAs, the latter not being subject to clock synchronisation. MiFID II requires more accuracy in the maximum time divergence for RMs/MTFs compared to APAs.5 The stricter requirements for RMs and MTFs reflects the high status of RMs and MTFs being ‘trading venues’, but can be troublesome when it comes to different maximum time frames across RMs/MTFs and APAs.6

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Art. 6(1) MiFIR.

Art. 14(1) MiFIR Delegated Regulation 2017/587.

Art. 50(1) MiFID II. See in this context also IOSCO’s, Technological Challenges to Effective Market Surveillance Issues and Regulatory Tools: Consultation Report, August 2012 and ESMA, MiFID II/MiFIR Review Report No. 1: On the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments, 5 December (ESMA70-156-1606), p. 85.

Recital 1 MiFIR Delegated Regulation 2017/574. Other goals of clock synchronisation is its ability to conduct cross-venue monitoring of orders and detecting instances of market abuse and it allows for a clearer comparison between the trade and the market conditions prevailing at the time of their execution (ibid).

ESMA, MiFID II/MiFIR Review Report No. 1: On the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments, 5 December (ESMA70-156-1606), p. 53.

The difference in timeframes is part of the MiFID II ESMA Review (ESMA, MiFID II/MiFIR Review Report No. 1: On the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments, 5 December (ESMA70-156-1606), p. 53). The MiFID II Review is examined in section V below.