EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.V:4.V Performing calculations and operating databases

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

4.V Performing calculations and operating databases

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS266505:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

MiFID I not only covered equity pre-trade transparency obligations for market participants, but also for NCAs and CESR. The harmonised equity pre-trade transparency thresholds of MiFID I implied calculations and estimates, as well as the publication of the results. Otherwise, market participants and NCAs would not be able to recognise (a) ‘liquid shares’ (and the related standard market size) (thresholds for the SI publication obligation)1 and (b) ‘large in scale’ orders (threshold for the RM/MTF large in scale-waiver/client limit order display-rule).2 To ensure calculation, estimation, and publication, NCAs were subject to (1) harmonised provisions for calculations and estimates (including publication) and (2) CESR operated EU databases. In addition, CESR maintained an SI register to ensure oversight of SI activity in the EU. By doing so, MiFID I took the first steps towards an EU approach for equity pre-trade transparency calculations/estimates and databases/registers.

4.V.1 Calculations and estimates 4.V.2 Databases and registers 4.V.3 Concluding remarks

Toon alle voetnoten

Voetnoten

Voetnoten

Art. 27 MiFID I Implementing Regulation. For an examination of the term ‘liquid share’/’liquid market’, reference is made to section III, paragraph 2.2 above.

For an examination of the term ‘large in scale’, reference is made to section II, paragraph 2.4.2 above. For the sake of clarity, the SI possibility to provide price improvements to professional investors for sizes bigger than EUR 7.500 (retail size) required no calculation. The fixed threshold of EUR 7.500 was in place to provide for a simple regime (i.e. without calculations). For an examination of the EUR 7.500-threshold, reference is made to section III, paragraph 3.2.2 above.