ESMA publishes an updated opinion on waivers from Pre-trade Transparency
15 December 2011
The update includes an opinion under article 18 (1)(A) of the Markets in Financial Instruments Directive (MiFID).
The European best bid/offer (“EBBO”) providing the reference prices at which orders may be executed is calculated and published by the trading platform. Under the trading platform’s EBBO policy, eligible MTFs which are candidates for inclusion in the EBBO are assessed for reliability and viability. In making this assessment, the market operator applies the following criteria:
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whether the eligible MTF meets a minimum liquidity threshold based on a pan-European market share evaluated over a quarterly cycle;
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whether transactions on the eligible MTF obtain a price which is consistent with the prices available on other liquid venues; and
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the relevant venue’s technology platform for resilience and latency, ownership and membership structures and clearing arrangements.
The market operator provides a market data service through a proprietary system, which is made available (on a non-discriminatory basis at a reasonable cost) to both users of the platform and non-users wishing to subscribe to the service. The prevailing EBBO in each security offered is widely published in real time via the market data service.
Full opinion
© ESMA
