ESMA consults on tick size regime

On 13th July 2018, the European Securities and Markets Authority (ESMA) published a Consultation Paper (CP) proposing amendments to the tick size regime (Commission Delegated Regulation (EU) 2017/588 (RTS 11)). The MiFID II tick size regime aims at creating a level playing field between the different trading venues in the EU by regulating the minimum price increment that can be used by those trading venues. The CP aims to address issues, in a timely manner, that have arisen with respect to financial instruments where only a marginal proportion of trading is executed on EU trading venues and the main pool of liquidity is located outside the EU (third country instruments).

Next steps
Stakeholders are invited to provide feedback on this proposal until 7 September 2018. ESMA, on the basis of the responses received to this CP, will finalise its proposed amendment to RTS 11 and submit a final report to the European Commission for endorsement.