ESMA_QA_1629

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1629

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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: Order book - Tick size regime

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Question

Submission Date: 19 December 2016

What happens to orders remaining on the order book at the moment the tick size increases?

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ESMA Answer

Answer Date: 19-12-2016

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.7] Trading venues have discretion to set the rules covering the treatment of orders remaining on the book at the moment the minimum tick size increases, including whether or not such orders are to be cancelled or amended. Trading venues are responsible to disclose those rules appropriately. Trading venues must also observe the requirement to enforce the minimum tick size for orders submitted after that tick size comes into force.

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