5.IV Investment firms and client limit orders in shares

The foregoing paragraphs examined the equity pre-trade transparency rules for RMs, MTFs, and SIs. This paragraph focuses upon a MiFID II pre-trade transparency requirement for investment firms operating outside RMs and MTFs (including SIs) in relation to limit orders of clients.1 Similar to MiFID I, MiFID II requires investment firms to immediately publish unexecuted client limit orders2 where certain conditions are met.3MiFID II expands the scope of the requirement from (a) shares admitted to trading on an RM (MiFID I situation) to (b) shares admitted to trading on an RM or traded on an RM or MTF (hereafter: ‘shares’). Under MiFID II other equity instruments than shares, namely depositary receipts, ETFs, certificates, and other similar financial instruments, fall outside the scope of the requirement.4 The so-called MiFID II ‘client limit order display rule’ is examined below.