EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.V.2.2.2:5.V.2.2.2 Trades determined by factors other than the current market valuation

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.V.2.2.2

5.V.2.2.2 Trades determined by factors other than the current market valuation

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The second subset of non-price forming trades are trades determined by factors other than the current market valuation of the share. While it is somewhat complicated to draw a clear delineation with non-addressable liquidity trades (i.e. also non-price forming trade),1MiFID II states that a trade is determined by factors other than the current valuation where the pricing is derived from other observed prices in the same or in other instruments.2 An example is a so-called portfolio trade. A portfolio trade is a transaction in more than one financial instrument, where the financial instruments are traded as a single unit (‘basket’) against a specific reference price. The assigned price for the single unit does not reflect the current market price of the individual elements of the unit, such as the share in question.3MiFID II covers an exhaustive list of trades that do not contribute to the price discovery process. The exhaustive list is the same as for ‘non-addressable liquidity trades’.4

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