Q&A · ESMA

Trading venues - maximum bid-ask ranges for all instruments traded on venues or only for instruments with market making scheme

Answered

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

AI-generated Summary

Venues allowing algorithmic trading must publish a maximum bid-ask range for every instrument they trade (they may group instruments), so firms can tell whether they are pursuing a market making strategy requiring an agreement, while market making schemes are needed only for the instruments listed in Article 5 of RTS 8.

Details

Reference	ESMA_QA_1616
Issuer	ESMA
Published	7 Jul 2017
Answered	7 Jul 2017
Submitted	7 Jul 2017
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 3.20

Provisions it relates to

Article 17 MiFID II · Algorithmic trading
MiFID II
Inferred · 75%
Article 48 MiFID II · Systems resilience, circuit breakers and electronic trading
MiFID II
Inferred · 85%
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.