5.IV.1.4.1 Level 1 text: expansion in scope

First, MiFID II expands the scope of the rule to shares admitted to trading on an RM or traded on an RM/MTF. Under MiFID I the rule was confined to shares admitted to trading on an RM only. The expansion in scope is a result of the broader MiFID II expansion in scope concerning where financial instruments are traded. In drafting MiFID II, the Council suggested that the rule would apply in respect of shares admitted to trading on an RM or traded on a trading venue.1 The Council’s proposal reflected the aim to ensure that also shares that are only traded on an MTF fall within the scope. Under MiFID I the client limit order display rule did not apply if a share was traded only on an MTF (i.e. where the share was not admitted to trading on an RM and traded on an MTF).2 Through expanding the scope of the rule to shares traded on a trading venue, that is – RM and MTF, the situation has changed under MiFID II.