Requirement (MIFID)
Article 18 Waivers based on market model and type of order or transaction
Requirements MIFID - REGULATION (EC) No 1287/2006
Description
Description
1. Waivers in accordance with Article 29(2) and 44(2) of
Directive 2004/39/EC may be granted by the competent
authorities for systems operated by an MTF or a regulated
market, if those systems satisfy one of the following criteria:
(a) they must be based on a trading methodology by which the
price is determined in accordance with a reference price
generated by another system, where that reference price is
widely published and is regarded generally by market
participants as a reliable reference price;
(b) they formalise negotiated transactions, each of which meets
one of the following criteria:
(i) it is made at or within the current volume weighted
spread reflected on the order book or the quotes of
the market makers of the regulated market or MTF
operating that system or, where the share is not traded
continuously, within a percentage of a suitable
reference price, being a percentage and a reference
price set in advance by the system operator;
(ii) it is subject to conditions other than the current
market price of the share.
For the purposes of point (b), the other conditions specified in
the rules of the regulated market or MTF for a transaction of this
kind must also have been fulfilled.
In the case of systems having functionality other than as
described in points (a) or (b), the waiver shall not apply to that
other functionality.
2. Waivers in accordance with Articles 29(2) and 44(2) of
Directive 2004/39/EC based on the type of orders may be
granted only in relation to orders held in an order management
facility maintained by the regulated market or the MTF pending
their being disclosed to the market.
Comment
Applies to Articles 29(2) and 44(2) of Directive 2004/39/EC