ESMA · ESMA_QA_1628 Answer Published

Intervention to allow smaller tick size

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
Browse MiFID Register → More Q&As on this regulation →

Question

Can a trading venue or NCA manually intervene to allow a smaller tick size if it can be shown that the mandated minimum tick size is adversely impacting liquidity?

Answer

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.5] No, except where there has been a corporate action event in which the NCA concerned will consider assigning a different liquidity band according to its estimate of the ADNT occurring in the most liquid venue following the said corporate action event.
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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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