ESMA_QA_1632

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1632

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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: Mandatory tick size regime for orders and quotes

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Question

Submission Date: 15 November 2017

Does the mandatory tick size regime apply to both orders and quotes?

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ESMA Answer

Answer Date: 15-11-2017

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.10] Yes, the minimum tick size established under Article 49 of MiFID II and further specified in RTS 11 should apply to both orders and quotes. This regime is meant to create a level playing field between the different trading venues and the reference to “orders” in Article 2 of RTS 11 should not be interpreted as restricting the application of the tick size regime to only certain types of trading systems but, on the contrary, should be understood in the broadest sense.

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