Requirement (MIFID)
Article 17 Pre-trade transparency obligations
Requirements MIFID - REGULATION (EC) No 1287/2006
Description
Description
1. An investment firm or market operator operating an MTF or
a regulated market shall, in respect of each share admitted to
trading on a regulated market that is traded within a system
operated by it and specified in Table 1 of Annex II, make public
the information set out in paragraphs 2 to 6.
2. Where one of the entities referred to in paragraph 1 operates
a continuous auction order book trading system, it shall, for each
share as specified in paragraph 1, make public continuously
throughout its normal trading hours the aggregate number of
orders and of the shares those orders represent at each price
level, for the five best bid and offer price levels.
3. Where one of the entities referred to in paragraph 1 operates
a quote-driven trading system, it shall, for each share as specified
in paragraph 1, make public continuously throughout its normal
trading hours the best bid and offer by price of each market
maker in that share, together with the volumes attaching to those
prices.
The quotes made public shall be those that represent binding
commitments to buy and sell the shares and which indicate the
price and volume of shares in which the registered market
makers are prepared to buy or sell.
In exceptional market conditions, however, indicative or one-way
prices may be allowed for a limited time.
4. Where one of the entities referred to in paragraph 1 operates
a periodic auction trading system, it shall, for each share specified
in paragraph 1, make public continuously throughout its normal
trading hours the price that would best satisfy the system's
trading algorithm and the volume that would potentially be
executable at that price by participants in that system.
5. Where one of the entities referred to in paragraph 1 operates
a trading system which is not wholly covered by paragraph 2 or
3 or 4, either because it is a hybrid system falling under more
than one of those paragraphs or because the price determination
process is of a different nature, it shall maintain a standard of
pre-trade transparency that ensures that adequate information is
made public as to the price level of orders or quotes for each
share specified in paragraph 1, as well as the level of trading
interest in that share.
In particular, the five best bid and offer price levels and/or twoway
quotes of each market maker in that share shall be made
public, if the characteristics of the price discovery mechanism
permit it.
6. A summary of the information to be made public in
accordance with paragraphs 2 to 5 is specified in Table 1 of
Annex II.
Comment
Applies to Articles 29 and 44 of Directive 2004/39/EC