Einde inhoudsopgave
EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.III.2.1
5.III.2.1 General
mr. J.E.C. Gulyás, datum 01-02-2021
- Datum
01-02-2021
- Auteur
mr. J.E.C. Gulyás
- JCDI
JCDI:ADS267023:1
- Vakgebied(en)
Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht
Voetnoten
Voetnoten
Art. 14(3) MiFIR. The prices published by a SI reflect prevailing market conditions where they are close in price at the time of publication to quotes of equivalent sizes for the same financial instrument on the most relevant market in terms of liquidity (as determined in article 4 MiFID II Delegated 2017/587) (art. 10 MiFIR Delegated Regulation 2017/587). A fairly similar definition was in place under MiFID I (art. 24 MiFID I Implementing Regulation).
Art. 15(1) MiFIR. A SI is considered to make public its quotes on a regular and continuous basis during normal trading hours only where the SI makes the quotes available at all times during the hours which the SI has established and published in advance as its normal trading hours (art. 12 MiFIR Delegated Regulation 2017/587).
MiFID II retains the general MiFID I framework for SIs, albeit in a stricter manner. The similarities between MiFID I and MiFID II are the following: MiFID II requires SIs, similar to RMs and MTFs, to publish pre-trade information. Considering the position risks involved of SIs (i.e. SIs trade for their own account (while executing client orders)), a distinct set of pre-trade transparency obligations (so-called ‘quoting obligations’) apply to SIs. SIs are in principle required to publish firm quotes in equity instruments (i.e. quotes are not indicative).1 ‘In principle’, since the obligation only applies in relation to equity instruments for which (a) the investment firm is an SI; (b) there is a liquid market; and (c) in sizes up to the standard market size.2 In case there is not a liquid market, SIs only need to disclose quotes to their clients upon request (see paragraph 2.2 below).3 Similar to MiFID I, MiFID II obliges the price or prices to reflect the prevailing market conditions for that equity instrument.4 In addition, the quotes need to be made public on a regular and continuous basis during normal trading hours.5 The quotes can be updated at any time.6MiFID II requires NCAs to check whether SIs regularly update bid and offer prices and maintain prices that reflect the prevailing market conditions.7