Q&As

Would financial instruments traded on a matched bargain facility be subject to MiFID II / MAR? Would a Matched Bargain facility fulfil the definitions of either a regulated market, MTF or OTF and therefore fall within of the scope of MiFID II and Article 2.1(d) MAR?

read titleRead full title
Published on LexisPSL on 01/02/2017

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • Would financial instruments traded on a matched bargain facility be subject to MiFID II / MAR? Would a Matched Bargain facility fulfil the definitions of either a regulated market, MTF or OTF and therefore fall within of the scope of MiFID II and Article 2.1(d) MAR?

To ascertain whether the Market Abuse Regulation (MAR) (Regulation (EU) 596/2014) would apply to financial instruments traded on a matched bargain facility, it is necessary to look at whether such a facility would constitute a regulated market, multilateral trading facility (MTF) or organized trading facility (OTF). See the definitions of regulated market OTF and MTF contained within Regulation (EU) 596/2014, art 3(1) (MAR) of which requires you to cross-refer to the definitions contained within Markets in Financial Instruments Directive II (MiFID II) (Directive 2014/65/EU).

Directive 2014/65/EU, art 4(1)(21) (MiFID II) defines a regulated market as ‘A multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments in the system and in accordance with its non-discretionary rules in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with Title III of the Markets in Financial Instruments Directive (MiFID) (Directive 2004/39 /EC)‘. As the financial instruments are ‘not admitted to trading’ (under Directive 2004/39 /EC, art 40 (MiF

Related documents:

Popular documents