Under MiFID operators of regulated markets (RMs) and multilateral trading facilities (MTFs) must make public the current bid and offer prices and the depth of trading interests in respect of shares admitted to trading on an RM unless exemptions apply. However, MiFID allows Member State competent authorities (NCAs) to waive the obligation for operators of RMs and MTFs regarding pre-trade transparency requirements for shares based on the market model or the type and size of orders.
MiFID allows NCAs to grant four types of waivers which are contained in Articles 18 and 20 of the MiFID Implementing Regulation. Possible waivers apply to: reference price systems, negotiated trade systems, order management facilities and large-in-scale transactions.
The European Securities and Markets Authority (ESMA) has now published an updated version of the waiver document that sets out its assessment of applications for waivers from pre-trade transparency requirements under MiFID. The waiver document is aimed at Member State competent authorities under MiFID to ensure that their supervisory activities are converging in accordance with the opinions provided by ESMA. The examples are also intended to provide clarity for firms on MiFID’s requirements without creating an extra layer of requirements and to assist them when they intend to develop new trading functionalities.