Article 52(1) of MiFID II requires a market operator to suspend or remove from trading financial instruments which no longer comply with the rules of a regulated market, unless such a step would be likely to cause significant damage to investors’ interests or the orderly functioning of the market. Furthermore, Article 52(2) of MiFID II requires a market operator that suspends or removes from trading a financial instrument to also suspend or remove the derivatives that relate or are referenced to that financial instrument where necessary to support the objectives of the suspension or removal of the underlying instrument.
According to Article 52(2) of MiFID II the Member State national competent authority in whose jurisdiction the suspension or removal originated has to decide whether it is necessary to expand the suspension or removal if one of the three reasons for doing so exists, e.g. suspected market abuse, a take-over bid or the non-disclosure of inside information about the issuer or financial instrument in breach of Articles 7 and 17 of Market Abuse Regulation. The expansion would apply to the trading of the same financial instrument or related derivatives on other regulated markets, multilateral trading facilities, organised trading facilities and systematic internalisers within its jurisdiction.
The European Commission (the Commission) has now adopted a Delegated Regulation supplementing MiFID II with regard to regulatory technical standards (RTS) for the suspension and removal of financial instruments from trading.
The Regulation will enter into force 20 days after its publication in the Official Journal of the European Union and will apply from the date that appears in the second subparagraph of Article 93(1) of MiFID II.
View Commission Delegated Regulation (EU) …/… of 24.5.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the suspension and removal of financial instruments from trading, 24 May 2016