ESMA · ESMA_QA_1629 Answer Published

Order book - Tick size regime

Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Topic
Tick size regime
Submitted
2016-12-19
Answered
2016-12-19
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Question

What happens to orders remaining on the order book at the moment the tick size increases?

Answer

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.7] Trading venues have discretion to set the rules covering the treatment of orders remaining on the book at the moment the minimum tick size increases, including whether or not such orders are to be cancelled or amended. Trading venues are responsible to disclose those rules appropriately. Trading venues must also observe the requirement to enforce the minimum tick size for orders submitted after that tick size comes into force.
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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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