ESMA_QA_1627

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1627

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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: Liquidity band for instruments trading in different currencies across trading venues

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Question

Submission Date: 18 November 2016

How is a liquidity band applied for instruments trading in different currencies across trading venues?

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ESMA Answer

Answer Date: 18-11-2016

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.4] Once a particular liquidity band is assigned to an instrument, trading of that instrument will continue within that band until another liquidity band is assigned as a result of periodical or ad hoc review by the relevant NCA or ESMA. As set out in Recital 8 of RTS 11, the same liquidity band will be applied irrespective of the currency denomination used for the quotation of the financial instrument.

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