5.II.1.6.5 Calibration and the introduction of the request for quote-trading system

The MiFID II equity pre-trade transparency obligations are calibrated to the underlying trading system used by the RM or MTF. The calibration of the equity pre-trade transparency obligations is mainly a legacy of MiFID I. ‘Mainly’, since MiFID II introduces a new trading system, that is – request for quote. The introduction of the request for quote-trading system follows from the MiFID II drafting process on level 2.1 Respondents to the ESMA consultation noted that a request for quote-trading system is of particular relevance for certain wholesale markets in equity-like instruments, especially ETFs. It was noted that a number of RMs and MTFs under MiFID I already operated request for quote-trading systems for ETFs and hence explicit calibration of equity pre-trade data publication for request for quote-trading systems would be preferable.2 A similar position is evident in the final MiFID II text. MiFID II covers explicit equity pre-trade transparency obligations for RMs and MTFs that use request for quote-trading systems. RMs and MTFs can exceed the MiFID II equity pre-trade transparency obligations, for example, in the form of more detailed data.3