4.II.1.1 Goal

MiFID I subjected RMs and MTFs to a pre-trade transparency regime for shares admitted to trading on an RM. The rationale behind the pre-trade transparency obligations was to achieve a high degree of transparency. The high degree of transparency was to ensure investors were adequately informed as to the true level of potential transactions in such shares. Another motivation behind the aim for a high degree of transparency was also to ensure that the price discovery of such shares would not be impaired by the fragmentation of liquidity and investors were thereby not penalised.1 The MiFID I pre-trade transparency obligations were also in place to enable investment firms to achieve best execution, in particular in the more competitive – and therewith potentially more fragmented – market of MiFID I.2