ESMA_QA_1494

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1494

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Tick size regime

Subject Matter: Tick size regime - Periodic auctions systems

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Question

Submission Date: 02 October 2019

Are periodic auctions systems subject to the tick size regime?

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ESMA Answer

Answer Date: 02-10-2019

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.11] Yes, periodic auction trading systems are subject to the tick size regime defined under Article 49 of MiFID II and further specified under CDR (EU) 2017/588. Therefore, market operators and investment firms operating such trading systems need to ensure that orders are submitted and that transactions are executed at a price that is in line with the mandatory tick size regime. For periodic auction systems that do not benefit from a reference price waiver, this prohibits the execution of transactions at a price that corresponds to the mid-point in cases where the spread consists of an uneven number of ticks.

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This document was automatically extracted from the ESMA EMIR Q&A database.