ESMA Publishes Final Report And Delegated Regulation Containing Final Draft RTS On Package Orders Under MIFID II

Authored by Charles Sheldon

On February 28, 2017, the European Securities and Markets Authority ("ESMA") published a final report on final draft Regulatory Technical Standards ("RTS") on the treatment of package orders under Article 9(6) of the Markets in Financial Instruments Regulation (Regulation 600/2014) ("MiFIR"). Included in the report, ESMA has published a draft Commission Delegated Regulation supplementing MiFIR with regard to package orders. The draft Delegated Regulation is based on ESMA's final draft RTS.

Article 9(6) of MiFIR requires ESMA to draft RTS to establish a methodology for determining whether there is a liquid market for a package order as a whole, assessing in particular whether packages are standardized and frequently traded.