ESMA_QA_1628

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1628

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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: Intervention to allow smaller tick size

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Question

Submission Date: 18 November 2016

Can a trading venue or NCA manually intervene to allow a smaller tick size if it can be shown that the mandated minimum tick size is adversely impacting liquidity?

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ESMA Answer

Answer Date: 18-11-2016

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.5] No, except where there has been a corporate action event in which the NCA concerned will consider assigning a different liquidity band according to its estimate of the ADNT occurring in the most liquid venue following the said corporate action event.

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