Q&A · ESMA
Intervention to allow smaller tick size
Answered
Read the official text on the ESMA website(opens in a new tab)AI-generated Summary
Neither a trading venue nor a competent authority may manually allow a smaller tick size than mandated because of an adverse effect on liquidity; the only exception is a corporate action, after which the authority may assign a different liquidity band.
Details
| Reference | ESMA_QA_1628 |
|---|---|
| Issuer | ESMA |
| Published | 18 Nov 2016 |
| Answered | 18 Nov 2016 |
| Submitted | 18 Nov 2016 |
| ESMA topics | Tick size regime |
| Earlier Q&A document | ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 4.5 |
Provisions it relates to
- Article 49 MiFID II · Tick sizesInferred · 90%
- MiFID II (whole act)Explicit reference