EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.II.1.3.3:4.II.1.3.3 Timing of the publication (speed)

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.II.1.3.3

4.II.1.3.3 Timing of the publication (speed)

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS266926:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

The MiFID I Directive required RMs and MTFs to publish the MiFID I pre-trade data on a continuous basis during normal trading hours (timing).1 The MiFID I Implementing Regulation specified this requirement. A definition of the ‘normal trading hours’ was in place.2 The MiFID I Implementing Regulation noted that during normal trading hours pre-trade data needed to be made public in real-time.3 MiFID I used the term ‘real-time’ to refer to pre-trade publication ‘(…) as close to instantaneously as technically possible, assuming a reasonable level of efficiency and of expenditure on systems on the part of the person concerned’.4 MiFID I did not apply a maximum timeframe to the meaning of real-time for pre-trade transparency publication (e.g. a maximum of three minutes). The latter was the case for the MiFID I post-trade transparency obligations.5 In sum, MiFID I required the MiFID I pre-trade data to be made public as soon as technically possible during normal trading hours. MiFID I applied specific timing-rules to so-called portfolio trades.6

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Art. 44(1) and art. 29(1) MiFID I. ‘Normal trading hours’ for an RM or MTF referred to those hours which the RM or MTF established in advance and made public as its trading hours (art. 2(5) MiFID I Implementing Regulation).

Normal trading hours’ for an RM or MTF referred to those hours which the RM or MTF established in advance and made public as its trading hours (art. 2(5) MiFID I Implementing Regulation).

Art. 29(1) MiFID I Implementing regulation.

Recital 18 MiFID I Implementing Regulation.

MiFID I made explicit that post-trade data publication in ‘real-time’ needed to be made available ‘(…) in any case within three minutes of the relevant transaction’ (see recital 18 and art. 29(2) MiFID I Implementing Regulation). For an examination of the MiFID I equity post-trade transparency regime, reference is made to chapter 8.

MiFID I defined a ‘portfolio trade’ as a transaction in more than one security where those securities are grouped and trades as a single lot against a specific reference price (art. 2(6) MiFID I Implementing Regulation). In other words, a portfolio trade was (and still 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. ESMA stated that 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 (ESMA, Discussion Paper: MiFID II/MiFIR, 2014(ESMA/2014/548), p. 102). MiFID I required information relating to a portfolio trade to be made available with respect to each constituent transaction as close to real time as possible, having regard to the need to allocate prices to particular shares (art. 29(3) MiFID I Implementing Regulation).