EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.II.1.2.2:4.II.1.2.2 Financial instruments

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/4.II.1.2.2

4.II.1.2.2 Financial instruments

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS266449:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

In terms of financial instruments, MiFID I was more limited compared to the ISD. The ISD pre-trade transparency obligations applied to a wide range of financial instruments, including shares, depositary receipts, bonds, and derivatives.1 By contrast, the MiFID I pre-trade transparency regime applied to (a) shares2 that were (b) admitted to trading on an RM.3 Given the latter conditions, shares only admitted to trading on an MTF were outside the scope. In addition, equity-like instruments (e.g. depositary receipts) and non-equity instruments fell outside the scope of the MiFID I pre-trade transparency regime. MiFID I permitted (not: obliged) Member States to expand the pre-trade transparency obligations to other financial instruments than shares.4

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Art. 21(1) ISD.

MiFID I did not cover a definition of ‘shares’. Shares were merely referred to as ‘shares in companies’ (art. 4(18(a) MiFID I). For a further examination of the term ‘shares’, reference is made to chapter 1 (section IV).

Art. 45(1) and art. 30(1) MiFID I Directive. The MiFID I rules on admission of financial instruments to trading on an RM can be found in art. 40 MiFID I and art. 6 MiFID I Implementing Regulation.

Recital 46 MiFID I Directive.