ESMA · ESMA_QA_1627 Answer Published

Liquidity band for instruments trading in different currencies across trading venues

Name: Liquidity band for instruments trading in different currencies across trading venues: ESMA Q&A — EU Financial Regulatory Q&A
Creator: European Securities and Markets Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Topic: Tick size regime
Submitted: 2016-11-18
Answered: 2016-11-18

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Question

How is a liquidity band applied for instruments trading in different currencies across trading venues?

Answer

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.4] Once a particular liquidity band is assigned to an instrument, trading of that instrument will continue within that band until another liquidity band is assigned as a result of periodical or ad hoc review by the relevant NCA or ESMA. As set out in Recital 8 of RTS 11, the same liquidity band will be applied irrespective of the currency denomination used for the quotation of the financial instrument.

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This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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