EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.II:5.II RMs and MTFs

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

5.II RMs and MTFs

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS267235:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

Under MiFID II investment firms can trade equity instruments, among other things, on an RM or MTF. Under MiFID II the term ‘equity instruments’ include shares, depositary receipts, ETFs, certificates, and other similar financial instruments.1 MiFID II subjects RMs and MTFs to equity pre-trade transparency rules.2 Potential equity transactions of investment firms on RMs and MTFs can be published under the MiFID II equity pre-trade transparency requirements for RMs and MTFs, provided that the MiFID II conditions are met. MIFID II requires RMs and MTFs to publish more equity pre-trade data compared to MiFID I. The new trading venue under MiFID II, that is – the OTF, is not subject to MiFID II equity pre-trade transparency rules (see paragraph 1.6.4 below).

5.II.1 Equity pre-trade transparency obligations 5.II.2 Equity pre-trade transparency waivers (dark pools)5.II.3 Waiver process 5.II.4 Internal matching systems and the requirement to authorise as an MTF 5.II.5 Concluding remarks

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See Title II, Chapter 1 MiFIR. For an examination of these financial instruments, reference is made to chapter 1(section IV).

The MiFID II definition of RMs and MTFs is fairly similar to the MiFID I-definitions (art. 4(1)(14-15) MiFID I Directive). The MiFID II-definition of RMs and MTFs can be found in art. 4(1)(21-22) MiFID II Directive. New under MiFID II is the inclusion of the so-called SME growth market as a species of the genus MTF (art. 4(1)(12) MiFID II Directive). SME growth markets are subject to the MiFID II equity pre-trade transparency regime for MTFs (and accordingly the same as for RMs). For an examination of the MiFID II definitions of RMs, MTFs (including a brief discussion of the SME Growth Markets), reference is made to chapter 1(section IV).