The European Securities and Markets Authority (ESMA) has published a final report on draft Regulatory Technical Standards (RTS) regarding the treatment of package orders under MiFID II and MiFIR.

The draft RTS establish a methodology for determining whether there is a liquid market for package orders as a whole following feedback received from stakeholders to a consultation paper that ESMA published in November 2016.

ESMA has revised the draft RTS in light of the responses received to its consultation. Overall, the revised draft RTS narrows down considerably the universe of package orders that qualify as having a liquid market as a whole. In line with the intentions stated in the consultation paper, ESMA opted for a more cautious approach based on feedback from stakeholders but also in view of the short timeframe for developing the RTS and the limited access to quantitative information on packages. ESMA intends to monitor trading activity in packages closely and may consider amendments to the draft RTS in the medium term.

ESMA submitted the final report to the European Commission on 27 February 2017. The Commission has three months to decide whether to endorse the draft RTS.

View ESMA issues implementing rules for package orders under MiFID II, 28 February 2017

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