Q&A · ESMA

Market making in securitised derivatives

Answered

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AI-generated Summary

A market maker in a securitised derivative whose whole issue has been sold and cannot be increased meets the RTS 8 two-way quote requirement by posting bid quotes only; this limited exception is separate from the exceptional circumstances in Article 3 of RTS 8.

Details

Reference	ESMA_QA_2104
Issuer	ESMA
Published	8 Jan 2024
Answered	8 Jan 2024
Submitted	12 Feb 2024
ESMA topics	Direct Electronic Access and algorithmic trading

Provisions it relates to

Article 17 MiFID II · Algorithmic trading
MiFID II
ESMA rulebook
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.