EU · MiFIR · TITLE III TRANSPARENCY FOR SYSTEMATIC INTERNALISERS AND INVESTMENT FIRMS TRADING OTC AND TICK SIZE REGIME FOR SYSTEMATIC INTERNALISERS
Article 23 MiFIRTrading obligation for investment firms
Share trading obligation, narrowed by the 2024 review: investment firms must trade shares with an EEA ISIN that are traded on a venue on a regulated market, MTF, SI or equivalent third-country venue, unless traded on a third-country venue in local or non-EEA currency, or between eligible and professional counterparties without contributing to price discovery. Firms operating internal matching systems that execute client orders multilaterally must be authorised as MTFs.
Amendments and application dates
| Amending act | Change | Applies from |
|---|---|---|
| Regulation (EU) 2024/791 | Text amended | 28 Mar 2024 |
Level 2: delegated and implementing acts
- RTSIn forceLegal basis
AI summaryAmends RTS 2 (2017/583) and RTS 1 (2017/587) after the 2024 MiFIR review: removes request-for-quote and voice trading systems from non-equity pre-trade transparency, defines central limit order books and periodic auction systems, keeps some provisions for derivatives during the transition, and updates large-in-scale and other transparency rules for bonds, structured finance products, emission allowances and equity instruments. Parts apply from 2 March 2026.
- RTSIn forceLegal basis
AI summaryAmends RTS 1 (2017/587) on equity transparency: aligns non-price forming transactions with RTS 22, raises the pre-trade large-in-scale threshold and the size qualifying for 60-minute deferral for ETFs, adds pre-trade transparency rules for hybrid trading systems and shortens publication delays. Most changes apply from 1 January 2024.
- RTSIn forceLegal basis
AI summaryAmends and corrects RTS 1 (2017/587) so that systematic internalisers' quotes and price improvements in shares and depositary receipts must respect the tick sizes that apply on trading venues, to preserve a level playing field, and updates and corrects other provisions.
- RTSIn forceLegal basis
AI summaryRTS 1 on transparency for shares, depositary receipts, ETFs, certificates and similar instruments: defines non-price forming transactions, sets pre-trade transparency by trading system, the conditions for negotiated trade, large-in-scale and order management facility waivers, systematic internaliser quoting rules, and post-trade publication and deferrals, and covers the share trading obligation. Amended notably by Delegated Regulations 2019/442, 2023/944 and 2025/1246.
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredInferred · 95%
AI summaryThe share trading obligation does not apply to primary market transactions (including accelerated bookbuilds of new shares) but does apply to block trades, buy-backs and bookbuilds of existing shares (which may use the negotiated or LIS waivers); ESMA also covers employee share plans, error corrections and odd lots from corporate actions.
- Q&AAnsweredInferred · 95%
AI summaryWhere orders in shares pass through a chain of firms, every EU investment firm in the chain, whether originating or broking, must ensure the final execution complies with the share trading obligation in Article 23(1) MiFIR, even if a non-EEA firm executes.
- OpinionPublishedESMA rulebook
AI summaryESMA opinion (ESMA70-156-117) on when an OTC derivative counts as 'traded on a trading venue' (TOTV) for MiFIR transparency, transaction reporting and reference data: only where it shares the same reference data details as a derivative traded on a venue, as identified by its ISIN; ESMA will monitor how the concept is applied.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document on MiFID II and MiFIR transparency (final version 27 October 2023, printed with the reference ESMA70-1562901-35), covering equity and non-equity transparency, pre-trade waivers, the double volume cap, the systematic internaliser regime, data reporting services providers and third-country issues. It is no longer updated; later Q&As are in ESMA's Q&A tool.
Consultations
- ConsultationClosed 24 Sept 2021Inferred · 70%
AI summaryHM Treasury's post-Brexit review of the UK wholesale capital markets regime (UK MiFID/MiFIR): proposals to clarify the regulatory perimeter, remove restrictions on accessing liquidity (such as the trading obligations), recalibrate fixed income and derivatives transparency, reform the commodities regime and amend the market data regime. Ran 2 July to 24 September 2021; the government's response (78 responses) confirmed it is taking the reforms forward.
Commentary
No law-firm commentary is linked to this provision yet.
219 more documents relate to MiFIR as a whole without naming an article.
UK counterpart
- Article 23 UK MiFIR · Investment firms operating internal matching systems
Revocation enacted by Financial Services and Markets Act 2023; no commencement date yet.
DivergedExplicit referenceEU changes after exit: Regulation (EU) 2024/791 (from 28 Mar 2024). UK changes after onshoring: Financial Services and Markets Act 2023 (from 29 Aug 2023). UK revocation enacted (Financial Services and Markets Act 2023), not yet commenced.
Version history
- From 28 Mar 2024
- From 2 Jul 2014 to 28 Mar 2024
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.