ESMA publishes update on transition to single volume cap under MiFIR
The European Securities and Markets Authority (ESMA) has announced that, from October 2025, the volume cap mechanism (VCM) under the Markets in Financial Instruments Regulation (EU) 600/2014 (MiFIR) will transition from the current double volume cap mechanism (DVCM) to a single VCM following the MiFIR review. Under the new system, trading under the reference price waiver is expected to be limited to 7% of total EU trading volume over the previous 12 months for each equity and equity-like instrument. If this threshold is exceeded, trading venues will be required to suspend the use of the waiver for three months, based on data published by ESMA.