The European Securities and Markets Authority (ESMA) has published a consultation paper seeking views on the draft Regulatory Technical Standard (RTS) that it is required to draft under Article 9(6) of MiFIR establishing a methodology for determining whether there is a liquid market for a package order as a whole. When developing the methodology ESMA is mandated to assess whether packages are standardised and frequently traded.

The consultation paper presents first the treatment of packages for transparency purposes, particularly focusing on the pre-trade transparency regime for package orders in the EU and the US and then discusses the methodology considered by ESMA for determining package orders for which there is a liquid market.

The deadline for comments on the consultation paper is 3 January 2017. ESMA will use the feedback it receives to finalise the RTS by February 2017.

View ESMA consults on transparency rules for package orders under MiFID II, 10 November 2016