Tuesday November 14 2017

News Source: Global Exchanges

Focus: Trading Rules

Type: General




On the 13th November 2017 the European Securities and Markets Authority (ESMA) updated its Question and Answers (Q&As) regarding the implementation of the Markets in Financial Instruments Directive (MiFID II).

The amended section concerned the issue of Trading Obligations for Shares and how these would be impacted by MIFID II. The amendment is designed to clarify the application of the trading obligation for shares to trade certain instruments on-venue.

The updated version states that:

Article 23(1) of MiFIR determines the scope of the trading obligation for shares admitted to trading on a regulated market or traded on a trading venue by requiring investment firms to ensure that trades they undertake in shares take place on a regulated market, MTF, systematic internaliser or equivalent third country venue.

Where there is a chain of transmission of orders concerning those shares all EU investment firms that are part of the chain (either initiating the orders or acting as brokers) should ensure that the ultimate execution of the orders complies with the requirements under Article 23(1) of MiFIR.

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