ESMA · ESMA_QA_1632 Answer Published

Mandatory tick size regime for orders and quotes

Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Topic
Tick size regime
Submitted
2017-11-15
Answered
2017-11-15
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Question

Does the mandatory tick size regime apply to both orders and quotes?

Answer

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.10] Yes, the minimum tick size established under Article 49 of MiFID II and further specified in RTS 11 should apply to both orders and quotes. This regime is meant to create a level playing field between the different trading venues and the reference to “orders” in Article 2 of RTS 11 should not be interpreted as restricting the application of the tick size regime to only certain types of trading systems but, on the contrary, should be understood in the broadest sense.
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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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