ESMA_QA_1628
18/11/2016
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Subject Matter
Intervention to allow smaller tick size
Can a trading venue or NCA manually intervene to allow a smaller tick size if it can be shown that the mandated minimum tick size is adversely impacting liquidity?
ESMA Answer
18-11-2016

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.5]

No, except where there has been a corporate action event in which the NCA concerned will consider assigning a different liquidity band according to its estimate of the ADNT occurring in the most liquid venue following the said corporate action event.

Status: Answer Published

Additional Information

Level 1 Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Topic
Tick size regime