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ESMA updates its Q&As on MiFID II and MiFIR transparency topics

02 April 2019

The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers regarding market structures and transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

The new Q&As provide clarification on the following topics:

  • Determination of the turnover to be used for the average value of transactions (AVT) calculation;
  • Money Market Instruments (MMIs);
  • Impact for systematic internalisers of an instrument changing liquidity status in between the systematic internaliser determination dates;
  • Reporting of prime brokerage transactions;
  • Quoting obligation for systematic internalisers in non-equity financial instruments;
  • Branches of third country firms operating as SI in the EU; and 
  • Third-country trading venues’ access to an EU CCP.

Updates to obsolete Q&As

ESMA also reviewed its published Q&As on market structures topics with the objective of deleting or amending obsolete Q&As such as those addressing issues pertaining to either 3 January 2018, or the following 12 months. This concerns 4 Q&As: 

  • Identification and authorisation of HFT (Q&A 6 of section 3 on Direct Electronic Access (DEA) and algorithmic trading);
  • Timing of notification for transitional arrangements under Article 35(5) of MiFIR (Q&A 1 of section 6 on Access to CCPs and trading venues);
  • Timing and procedure of notification for temporary opt out under Article 36(5) MiFIR (Q&A 3 of section 6 on Access to CCPs and trading venues); and 
  • Timing of application for transitional arrangements under Article 54(2) of MiFIR (Q&A 5 of section 6 on Access to CCPs and trading venues).

In addition, the Q&A clarifying how tick sizes should be determined for non-EU instruments (Q&A 3 of section 4 on the tick size regime) is also deleted due to the recent publication in the Official Journal of CDR (EU) 2019/443 amending Delegated Regulation (EU) 2017/588 (RTS 11).


The purpose of these Q&As is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR. They provide responses to questions posed by the general public and market participants in relation to the practical application of level 1 and level 2 provisions relating to transparency and market structures issues.

ESMA will continue to develop these Q&As in the coming months and will review and update them where required.