Powers to suspend trading under MiFID
Article 41(1) of MiFID gives operators of regulated markets the power to suspend or remove from trading a financial instrument which no longer complies with the rules of the regulated market unless such a step would be likely to cause significant damage to the investors' interests or the orderly functioning of the market.
Under Article 50 of MiFID, CAs are given supervisory and investigatory powers necessary for the exercise of their functions. These powers include the rights (a) to require the suspension of trading in a financial instrument and (b) to require the removal of a financial instrument from trading, whether on a regulated market or under other trading arrangements.
Notification obligations under Article 41 of MiFID
Article 41 requires a pan-EEA framework for information sharing in relation to suspensions and removals of trading in financial instruments, between operators of regulated markets (MO) and their respective home Member State (MS) CAs as well as between such authorities.
If a MO suspends or removes a financial instrument from trading, under Article 41(1) it is required to give notice to the CA and make a public announcement. The CA must then inform other CAs.
Where a CA suspends or removes financial instruments from trading, according to Article 41(2) it must immediately make public its decision and notify other CAs, who are obliged to take similar action unless it would be likely to cause significant damage to the interests of investors or the orderly functioning of financial markets.
Full protocol
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