5.V Investment firms and the share trading-obligation

MiFID II covers a share trading-obligation for investment firms.1 Where certain criteria are met, investment firms are required to concentrate (route and trade) share trading to regulated venues.2 The eligible venues (regulated venues) are RMs, MTFs, SIs, and equivalent third-country trading venues.3 The eligible venues are characterised by a high degree of transparency, both pre- and post-trade.4 The MiFID II share trading-obligation reminds somewhat of the optional ISD concentration-rule, albeit that MiFID II share trading-obligation is: (a) mandatory (not: optional) and (b) leaves more room for competition among different types of venues (the ISD limited the concentration-rule to RMs). The MiFID II share trading-provision covers an obligation to undertake certain share trades on regulated venues (paragraph 1 below), as well as exceptions to the obligation (paragraph 2 below).