EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/13.IV.1:13.IV.1 Publication arrangements for equity pre-trade data

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/13.IV.1

13.IV.1 Publication arrangements for equity pre-trade data

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS267000:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

Three regimes can be distinguished for MiFID II equity pre-trade data publication:

a): One regime applies to SIs. MiFID II notes that the publication of SI equity quotes (equity pre-trade data) needs to take place through: (a) proprietary arrangements, (b) the facilities of an RM or MTF, or (c) the facilities of an APA.1 Quote publication through an APA is new under MiFID II. MiFID II replaces the MiFID I-possibility of quote publication through a ‘third party’ by APAs, the latter being subject to prior authorization and ongoing supervision.2
b): Another regime applies to RMs and MTFs. MiFID II covers no explicit requirements through which publication arrangements RMs and MTFs need to publish the MiFID II equity pre-trade data. MiFID II permits RMs and MTFs to choose how to publish the MiFID II equity pre-trade data of current opportunities available in their systems.3
c): MiFID II covers rules for investment firms that need to ensure the publication of unexecuted client limit orders in certain shares outside RMs and MTFs (client limit order display rule). MiFID II notes that such publication needs to take place: (1) through sending the unexecuted client limit order to an RM or MTF (which accordingly publishes the equity pre-trade data) or (2) a data reporting services provider, being an APA, CTP or ARM.4

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Art. 17(3) MiFIR and art. 13(2) MiFIR Delegated Regulation 2017/567.

Art. 30(b) MiFID I Implementing Regulation and Art. 17(3) MiFIR. In the context of equity post-trade data, see art. 20(1) MiFIR. For an examination of the MiFID II provisions for authorization and supervision of APAs, reference is made to paragraph II above.

Art. 3(1) MiFIR. MiFID II does not make explicit how the publication for RMs and MTFs needs to take place. The situation contrasts with the explicit MiFID II requirements for SIs (art. 14(1) and art. 17(3)(a) MiFIR) and investment firms that are required to publish unexecuted client limit orders in shares (art. 28(2) MiFID II Directive and art. 70(1) MiFIR Delegated Regulation 2017/565).

Art. 28(2) MiFID II Directive and art. 70(1) MiFIR Delegated Regulation 2017/565.