EUROPEAN UNION: ESMA Issues Implementing Rules for Package Orders under MiFID II

Wednesday March 1 2017

The European Securities and Markets Authority (ESMA) has published its final report on draft regulatory technical standards (RTS) regarding the treatment of package orders under the amended Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

This final report presents the revised draft RTS establishing a methodology for determining whether there is a liquid market for package orders as a whole following feedback received from stakeholders to the consultation paper (CP) published on 10 November 2016. The report explains the final approach and discusses feedback received from stakeholders.

Section 2 introduces the topic. Section 3 describes the revised approach, starting with general criteria a package order has to meet in order to be eligible for having a liquid market as a whole (sections 3.2 and 3.3) before discussing the asset-class specific criteria in section 3.4. The Annex contains the final draft RTS, the cost-benefit analysis as well as a detailed feedback summary.

ESMA submitted the final report to the European Commission on 27 February 2017. The Commission has three months to decide whether to endorse the draft RTS.

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