EUROPEAN UNION: ESMA issues Q&A on Double Volume Cap Mechanism under MiFID II

Monday October 3 2016

The European Securities and Markets Authority (ESMA) has issued a Question and Answers (Q&A) document regarding the implementation of the double volume cap under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).  MiFID II introduces a so-called “double” volume cap mechanism which limits the use of reference price waivers and negotiated price waivers under the new transparency regime of MIFID II.

The purpose of the Q&A is to promote common supervisory approaches and practices in the application of MiFID II/ MiFIR in relation to the double volume cap provisions.

The Q&A provides details regarding:

• clarifications regarding what data has to be taken into consideration in respect of volumes traded under MiFID I waivers in 2017;
• the application of the double volume cap regarding MTF only shares, depositary receipts, certificates, and newly issues instruments; and
• the implications of exceeding a relevant threshold in a mid-month report.

Click on the above link for further details.