EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.III.1.2.3:5.III.1.2.3 Possibility to opt-in

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.III.1.2.3

5.III.1.2.3 Possibility to opt-in

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS267137:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

The MiFID II-SI definition only applies where both the pre-set limits for (i) a frequent and systematic basis; and (ii) a substantial basis are crossed.1 An exception to the foregoing is where an investment firm chooses to opt-in under the SI regime. In this case, even when the investment firm does not meet the quantitative criteria, the SI-regime applies, provided that the investment firm complies with the applicable rules.2 Under MiFID I SIs were not able to opt-in.3

Toon alle voetnoten

Voetnoten

Voetnoten

Recital 19 MiFIR. Other changes to the SI-definition are that the sentence ‘outside an RM or an MTF’ has been expanded to include ‘or an OTF’. In addition, the MiFID II definition adds that a SI operates without a multilateral system. This means that MiFID II clarifies that a SI is not allowed to bring third-party buying and selling interests together, in contrast with RMs, MTFs, and OTFs (recital 20 MiFIR and art. 4(1)(20) MiFID II). For comments on the MiFID II-definition, reference is made to D. Busch, MiFID II and MiFIR: stricter rules for the EU financial markets, Law and Markets Review, 2017.

Art. 4(1)(20) MiFID II.

See art. 21 MiFID I Implementing Regulation. Incentives for an investment firm to opt-in as a SI are (1) the ability of being an eligible venue under the MiFID II share trading-obligation (see section V below) and (2) the publication requirements, in particular in terms of post-trade data publication to an APA (in a nutshell, SI are always required to publish to an APA, instead of the counterparty of the SI). For an examination of the MiFID II requirement for investment firms operating outside RMs/MTFs to publish equity post-trade data through an APA, reference is made to chapter 13.