4.II.2.4.3.1 Level 1 text: goals of the waiver

Exceptions to pre-trade transparency publication for large orders were not new. Already under the ISD RMs could be exempted from pre-trade transparency publication where orders were ‘very large in scale compared with average transactions (…)’.1 In drafting MiFID I, the Commission argued that requiring the display of large orders could result in market impact. A large in scale-waiver could prevent this situation from happening.2 MiFID I reflects this type of thinking. The MiFID I Directive noted that NCAs in particular needed to be able to waive the pre-trade transparency obligations for RMs and MTFs in respect of transactions that were large in scale compared with the normal market size for the share or type of share in question. The MiFID I Directive acknowledged that large orders can be executed more efficiently in a less transparent market (i.e. reduce market impact and volatility).3