Requirement (MIFID)
Article 9 Determination of the most relevant market in terms of liquidity
Requirements MIFID - REGULATION (EC) No 1287/2006
Description
Description
1. The most relevant market in terms of liquidity for a financial
instrument which is admitted to trading on a regulated market,
hereinafter ‘the most relevant market’, shall be determined in
accordance with paragraphs 2 to 8.
2. In the case of a share or other transferable security covered
by Article 4(1)(18)(a) of Directive 2004/39/EC or of a unit in a
collective investment undertaking, the most relevant market shall
be the Member State where the share or the unit was first
admitted to trading on a regulated market.
3. In the case of a bond or other transferable security covered
by Article 4(1)(18)(b) of Directive 2004/39/EC or of a money
market instrument which, in either case, is issued by a subsidiary,
within the meaning of Seventh Council Directive 83/349/EEC of
13 June 1983 on consolidated accounts (1), of an entity which
has its registered office in a Member State, the most relevant
market shall be the Member State where the registered office of
the parent entity is situated.
4. In the case of a bond or other transferable security covered
by Article 4(1)(18)(b) of Directive 2004/39/EC or of a money
market instrument which, in either case, is issued by a
Community issuer and which is not covered by paragraph 3 of
this Article, the most relevant market shall be the Member State
where the registered office of the issuer is situated.
5. In the case of a bond or other transferable security covered
by Article 4(1)(18)(b) of Directive 2004/39/EC or a money
market instrument which, in either case, is issued by a third
country issuer and which is not covered by paragraph 3 of this
Article, the most relevant market shall be the Member State
where that security was first admitted to trading on a regulated
market.
6. In the case of a derivative contract or a financial contract for
differences or a transferable security covered by Article 4(1)(18)
(c) of Directive 2004/39/EC, the most relevant market shall be:
(a) where the underlying security is a share or other
transferable security covered by Article 4(1)(18)(a) of
Directive 2004/39/EC which is admitted to trading on a
regulated market, the Member State deemed to be the most
relevant market in terms of liquidity for the underlying
security, in accordance with paragraph 2;
(b) where the underlying security is a bond or other
transferable security covered by Article 4(1)(18)(b) of
Directive 2004/39/EC or a money market instrument
which is admitted to trading on a regulated market, the
Member State deemed to be the most relevant market in
terms of liquidity for that underlying security, in
accordance with paragraphs 3, 4 or 5;
(c) where the underlying is an index composed of shares all of
which are traded on a particular regulated market, the
Member State where that regulated market is situated.
7. In any case not covered by paragraphs 2 to 6, the most
relevant market shall be the Member State where the regulated
market that first admitted the transferable security or derivative
contract or financial contract for differences to trading is located.
8. Where a financial instrument covered by paragraphs 2, 5 or
7, or the underlying financial instrument of a financial
instrument covered by paragraph 6 to which one of paragraphs 2,
5 or 7 is relevant, was first admitted to trading on more than one
regulated market simultaneously, and all those regulated markets
share the same home Member State, that Member State shall be
the most relevant market...
Comment
Applies to Second subparagraph of Article 25(3) of Directive 2004/39/EC