On 4 October 2018, the European Securities and Markets Authority (ESMA) published two updated MiFID II and MiFIR Q&As concerning transparency topics, and market structures.

The Q&A on transparency topics modifies a question on the default liquidity status of bonds under Article 2(1)(17)(a) of MiFIR, and introduces two new questions on the classification of derivatives on derivatives (Annex III of RTS 2), and the scope of Article 9(1)(c) of MiFIR.

The Q&A on market structures introduces the following entries on:

  • market making and incentives to be provided during stressed market conditions (Article 6 of Regulatory Technical Standard (RTS) 8);
  • bulk quotes in the context of RTS 9 on Order to Trade Ratio (RTS 9);
  • scope of Article 17(6) of MiFID II and Chapter IV (Articles 24- 27 of RTS 6);
  • arranging transactions that are ultimately formalised on another trading venue (Article 4(1)(21),(22),(23) of MiFID II);
  • registration of a segment of an MTF as an SME growth market (Article 33 of MiFID II and Articles 77-78 of Commission Delegated Regulation 2017/565); and
  • maker taker schemes (Article 48(9) of MiFID II).