EU · MiFID II · TITLE III REGULATED MARKETS
Article 49 MiFID IITick sizes
Requires regulated markets to apply tick size regimes to shares, depositary receipts, ETFs, certificates and similar instruments (and any other instruments covered by RTS), calibrated to liquidity and average spreads, while allowing large-in-scale orders to be matched at mid-point. For shares whose most liquid market is in a third country, venues may apply that venue's tick size; ESMA RTS set the regimes.
Amendments and application dates
| Amending act | Change | Applies from |
|---|---|---|
| Directive (EU) 2019/2034 | Text amended | by 26 Jun 2021 |
| Directive (EU) 2024/790 | Text inserted | 29 Sept 2025 |
Level 2: delegated and implementing acts
- RTSIn forceLegal basis
AI summaryAmends RTS 11 (2017/588) so that the annual average daily number of transactions calculations for shares, depositary receipts and ETFs, published by 1 March, apply from the first Monday of April instead of 1 April, letting venues update tick size systems over a weekend.
- RTSIn forceLegal basis
AI summaryAmends RTS 11 (2017/588) to let competent authorities adjust the average daily number of transactions used for tick sizes where a share's most liquid trading venue is outside the EU, so the tick size reflects the share's overall liquidity, using third-country venue or other public data.
- RTSIn forceLegal basis
AI summaryRTS 11 on the mandatory tick size regime for shares, depositary receipts and ETFs under Article 49 MiFID II: sets minimum tick sizes by price range and liquidity band (based on the average daily number of transactions on the most relevant market) and covers corporate actions and transitional calculations.
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredExplicit reference · 90%ESMA_QA_1493: Minimum tick size regime under Article 49 of MiFID II - Pre-trade transparency waivers
AI summaryThe minimum tick size regime applies to all orders on trading venues, including resting limit orders and orders in order management systems, but not to trades under the reference price waiver, negotiated transactions, or large-in-scale orders matched at the mid-point.
- Q&AAnsweredInferred · 95%
AI summaryPeriodic auction systems are subject to the tick size regime in Article 49 MiFID II and Delegated Regulation 2017/588, so without a reference price waiver they cannot execute at the mid-point where the spread is an odd number of ticks.
- Q&AAnsweredInferred · 90%
AI summaryUntil ESMA or the competent authority publishes an instrument's average daily number of trades, all venues should apply the highest liquidity band (ADNT of 9,000 or more) for tick sizes; published figures apply from the next day.
- Q&AAnsweredInferred · 95%
AI summaryThe mandatory minimum tick size under Article 49 MiFID II and RTS 11 applies to both orders and quotes, whatever the trading system, to keep a level playing field between venues.
- Q&AAnsweredInferred · 85%
AI summaryFor a share with a simultaneous dual listing, ESMA's website shows a single competent authority, that of the most relevant market in terms of liquidity, for estimating average daily trades and setting the tick size.
- Q&AAnsweredInferred · 90%
AI summaryWhen an instrument's minimum tick size increases, trading venues decide and disclose how orders already on the book are treated (for example cancelled or amended), but must enforce the new tick size for orders submitted afterwards.
- Q&AAnsweredInferred · 85%
AI summaryThe average daily number of transactions used for tick sizes is calculated and published by the competent authority of the most relevant market under Article 16 of RTS 22 (for new instruments, where admission was first requested or trading first took place), and is published centrally on ESMA's website.
- Q&AAnsweredInferred · 90%
AI summaryNeither 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.
- Q&AAnsweredInferred · 90%
AI summaryAn instrument's liquidity band for tick sizes applies whatever the currency in which it is quoted on different trading venues, and stays until a periodic or ad hoc review assigns a new band.
- Q&AAnsweredInferred · 85%
AI summaryAny corporate action that the competent authority expects to materially change an instrument's average daily number of trades, such as a share buyback or new issue, may trigger a recalculation of its tick size liquidity band under Article 4 of RTS 11.
- 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
- DivergedExplicit reference · 90%
EU changes after exit: Directive (EU) 2019/2034 (by 26 Jun 2021), Directive (EU) 2024/790 (from 29 Sept 2025).
- MAR 5.3A.14R Flagging orders, tick sizes and clock synchronisation
- MAR 5.3A.15R Flagging orders, tick sizes and clock synchronisation
- MAR 5.3A.16G Flagging orders, tick sizes and clock synchronisation
- MAR 5A.5.14R Flagging orders, tick sizes and clock synchronization
- MAR 5A.5.15R Flagging orders, tick sizes and clock synchronisation
- MAR 5A.5.16G Flagging orders, tick sizes and clock synchronization
- MAR 5.3A.14AR · Flagging orders, tick sizes and clock synchronisationDivergedExplicit reference · 90%
EU changes after exit: Directive (EU) 2019/2034 (by 26 Jun 2021), Directive (EU) 2024/790 (from 29 Sept 2025). UK changes after exit to MAR 5.3A.14AR: FCA 2021/2 (from 29 Jan 2021).
- MAR 5A.5.14AR · Flagging orders, tick sizes and clock synchronisationDivergedExplicit reference · 90%
EU changes after exit: Directive (EU) 2019/2034 (by 26 Jun 2021), Directive (EU) 2024/790 (from 29 Sept 2025). UK changes after exit to MAR 5A.5.14AR: FCA 2021/2 (from 29 Jan 2021).
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Version history
- From 28 Mar 2024
- From 26 Mar 2020 to 28 Mar 2024
- From 17 Sept 2014 to 26 Mar 2020
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.