EU · MiFID II · TITLE II AUTHORISATION AND OPERATING CONDITIONS FOR INVESTMENT FIRMS · CHAPTER I Conditions and procedures for authorisation
Article 18 MiFID IITrading process and finalisation of transactions in an MTF and an OTF
Sets common requirements for operators of MTFs and OTFs: transparent rules for fair and orderly trading and efficient execution, criteria for the instruments traded and adequate public information, transparent and non-discriminatory access rules, conflict management, compliance with Articles 48 and 49, settlement arrangements, at least three materially active members, compliance with suspension instructions, and a detailed description of the venue's functioning for the competent authority.
Level 2: delegated and implementing acts
- ITSIn forceLegal basis
AI summaryITS on the content and format of the description of how an MTF or OTF functions that operators must give competent authorities (including additional information for SME growth markets and OTFs, asset-class details and material changes), and on notifying ESMA of MTF and OTF authorisations.
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredExplicit reference · 90%
AI summaryUnder Articles 18(3) and 53(1) MiFID II, venues must not impose restrictive access criteria; for example they may not require members to be direct clearing members of a CCP (only to have a clearing agreement) or, for centrally cleared instruments, let members require others to be enabled before trading with them, though credit checks may be legitimate for uncleared instruments.
- GuidelinesPublishedESMA rulebook
AI summaryESMA guidelines of May 2021 (ESMA50-164-4285) on outsourcing to cloud service providers by a wide range of firms, including fund managers and depositaries, CCPs, trade repositories and MiFID II investment firms and credit institutions providing investment services, covering governance and documentation, pre-outsourcing due diligence, key contract terms, information security, exit strategies, access and audit rights, sub-outsourcing, notifying authorities and supervision.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document (ESMA70-872942901-38, final version 13 October 2023) on market structure topics, covering data disaggregation, direct electronic access and algorithmic trading, the tick size regime, multilateral and bilateral systems (including OTFs and systematic internalisers) and access to CCPs and trading venues. It is no longer updated; later Q&As are in ESMA's Q&A tool.
Commentary
No law-firm commentary is linked to this provision yet.
393 more documents relate to MiFID II as a whole without naming an article.
UK counterpart
- MAR 5.3.1R · Rules, procedures and arrangementsEquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). MAR 5.3.1R transposes the article, so the wording differs.
- MAR 5.3.1AR · Functioning of an MTFDivergedExplicit reference · 90%
UK changes after exit to MAR 5.3.1AR: FCA 2021/59 (from 1 Dec 2021), FCA 2025/55 (from 28 Nov 2025).
- MAR 5.3.8R · Transferable securities traded without issuer consentEquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). MAR 5.3.8R transposes the article, so the wording differs.
- EquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). MAR 5.4.1R transposes the article, so the wording differs.
- MAR 5A.4.1R · Rules, procedures and arrangementsEquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). MAR 5A.4.1R transposes the article, so the wording differs.
- MAR 5A.4.2R · Functioning of an OTFDivergedExplicit reference · 90%
UK changes after exit to MAR 5A.4.2R: FCA 2021/59 (from 1 Dec 2021).
- MAR 5A.4.3R · Transferable securities traded without issuer consentEquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). MAR 5A.4.3R transposes the article, so the wording differs.
- EquivalentExplicit reference · 90%
No change on either side since exit (31 Dec 2020). MAR 5A.6.1R transposes the article, so the wording differs.
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Version history
- From 17 Sept 2014
Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.