Q&A · ESMA

Requirement imposed on market markers to post simultaneous two-way quotes of comparable size

Answered

Read the official text on the ESMA website(opens in a new tab)

AI-generated Summary

The RTS 8 requirement for market makers to post simultaneous two-way quotes of comparable size does not stop them voluntarily adding liquidity on either side; only the quotes posted to meet the market making agreement are flagged as such.

Details

Reference	ESMA_QA_1624
Issuer	ESMA
Published	14 Nov 2018
Answered	14 Nov 2018
Submitted	14 Nov 2018
ESMA topics	Direct Electronic Access and algorithmic trading
Earlier Q&A document	ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.29

Provisions it relates to

Article 17 MiFID II · Algorithmic trading
MiFID II
Inferred · 90%
MiFID II (whole act)
Explicit reference

Documents it refers to

RTSIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/578 of 13 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards specifying the requirements on market making agreements and schemes
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryRTS 8 on market making: specifies when algorithmic traders pursuing a market making strategy must sign a market making agreement with a trading venue, the agreement's minimum content and the exceptional circumstances that suspend obligations, and requires venues to run fair and non-discriminatory market making schemes for specified liquid instruments.