Requirement (MIFID)
Article 27 Obligation for investment firms to make public firm quotes
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. Member States shall require systematic internalisers in shares to
publish a firm quote in those shares admitted to trading on a regulated
market for which they are systematic internalisers and for which there is
a liquid market. In the case of shares for which there is not a liquid
market, systematic internalisers shall disclose quotes to their clients on
request.
The provisions of this Article shall be applicable to systematic internalisers
when dealing for sizes up to standard market size. Systematic internalisers
that only deal in sizes above standard market size shall not be
subject to the provisions of this Article.
Systematic internalisers may decide the size or sizes at which they will
quote. For a particular share each quote shall include a firm bid and/or
offer price or prices for a size or sizes which could be up to standard
market size for the class of shares to which the share belongs. The price
or prices shall also reflect the prevailing market conditions for that
share.
Shares shall be grouped in classes on the basis of the arithmetic average
value of the orders executed in the market for that share. The standard
market size for each class of shares shall be a size representative of the
arithmetic average value of the orders executed in the market for the
shares included in each class of shares.
The market for each share shall be comprised of all orders executed in
the European Union in respect of that share excluding those large in
scale compared to normal market size for that share.
2. The competent authority of the most relevant market in terms of
liquidity as defined in Article 25 for each share shall determine at least
annually, on the basis of the arithmetic average value of the orders
executed in the market in respect of that share, the class of shares to
which it belongs. This information shall be made public to all market
participants.
Referenced requirement
Article 24 Quotes reflecting prevailing market conditions
Article 34 Publication and effect of results of required calculations and estimates
Article 23 Standard market size
Article 29 Publication and availability of pre- and post-trade transparency data
Article 32 Arrangements for making information public
Article 22 Determination of liquid shares
Article 26 Retail size
Article 30 Public availability of pre- and post-trade information
Article 20 Waivers in relation to transactions which are large in scale
Article 25 Execution of orders by systematic internalisers
Article 33 Calculations and estimates for shares admitted to trading on a regulated market