What changed, Commission Delegated Regulation (EU) 2017/588 of 14 July 2016 supplementing Directive 2014/65/EU

+ **1.** Trading venues shall apply to orders in shares or depositary receipts a tick size which is equal to or greater than the one corresponding to:(a) the liquidity band in the table in the Annex corresponding to average daily number of transactions in the most relevant market in terms of liquidity…
− Tick size for shares, depositary receipts and exchange-traded funds
+ **2.** By way of derogation from paragraph 1(a), where the most relevant market in terms of liquidity for a share or depositary receipt operates only a trading system that matches orders on the basis of a periodic auction and a trading algorithm operated without human intervention, trading venues sh…
− (Article 49(1) and (2) of Directive 2014/65/EU)
+ **3.** Trading venues shall apply to orders in exchange-traded funds a tick size which is equal to or greater than the one corresponding to:(a) the liquidity band in the table in the Annex corresponding to the highest average daily number of transactions; and(b) the price range in that liquidity ban…
− 1. Trading venues shall apply to orders in shares or depositary receipts a tick size which is equal to or greater than the one corresponding to:
+ **4.** The requirements set out in paragraph 3 shall only apply to exchange-traded funds the underlying financial instruments of which are solely equities subject to the tick size regime under paragraph 1 or a basket of such equities.
− (a) the liquidity band in the table in the Annex corresponding to average daily number of transactions in the most relevant market in terms of liquidity for that instrument; and
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− (b) the price range in that liquidity band corresponding to the price of the order.
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− 2. By way of derogation from paragraph 1(a), where the most relevant market in terms of liquidity for a share or depositary receipt operates only a trading system that matches orders on the basis of a periodic auction and a trading algorithm operated without human intervention, trading venues shall …
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− 3. Trading venues shall apply to orders in exchange-traded funds a tick size which is equal to or greater than the one corresponding to:
− (a) the liquidity band in the table in the Annex corresponding to the highest average daily number of transactions; and
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− (b) the price range in that liquidity band corresponding to the price of the order.
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− 4. The requirements set out in paragraph 3 shall only apply to exchange-traded funds the underlying financial instruments of which are solely equities subject to the tick size regime under paragraph 1 or a basket of such equities.
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− Average daily number of transactions for shares and depositary receipts
+ **1.** By 1 March of the year following the date of application of Regulation (EU) No 600/2014 and by 1 March of each year thereafter, the competent authority for a specific share or depositary receipt shall, when determining the most relevant market in terms of liquidity for that share or depositar…
− (Article 49(1) and (2) of Directive 2014/65/EU)
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− 1. By 1 March of the year following the date of application of Regulation (EU) No 600/2014 and by 1 March of each year thereafter, the competent authority for a specific share or depositary receipt shall, when determining the most relevant market in terms of liquidity for that share or depositary re…
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− 2. The calculation referred to in paragraph 1 shall have the following characteristics:
+ **2.** The calculation referred to in paragraph 1 shall have the following characteristics:(a) it shall include, for each trading venue, transactions executed under the rules of that trading venue, excluding reference price and negotiated transactions flagged as set out in Table 4 of Annex I to Dele…
− (a) it shall include, for each trading venue, transactions executed under the rules of that trading venue, excluding reference price and negotiated transactions flagged as set out in Table 4 of Annex I to Delegated Regulation (EU) 2017/587 and transactions executed on the basis of at least one order…
+ **3.** Paragraphs 1 and 2 shall not apply to shares and depositary receipts which were first admitted to trading or were first traded on a trading venue four weeks or less before the end of the preceding calendar year.
− (b) it shall cover either the preceding calendar year or, where applicable, the period of the preceding calendar year during which the financial instrument was admitted to trading or has been traded on a trading venue and was not suspended from trading.
+ **4.** Trading venues shall apply the tick sizes of the liquidity band corresponding to the average daily number of transactions as published in accordance with paragraph 1 from the first Monday of April following that publication.
− 3. Paragraphs 1 and 2 shall not apply to shares and depositary receipts which were first admitted to trading or were first traded on a trading venue four weeks or less before the end of the preceding calendar year.
+ **5.** Before the first admission to trading or before the first day of trading of a share or depositary receipt, the competent authority of the trading venue where that financial instrument is to be first admitted to trading or is to be first traded shall estimate the average daily number of transa…
− 4. Trading venues shall apply the tick sizes of the liquidity band corresponding to the average daily number of transactions as published in accordance with paragraph 1 from 1 April following that publication.
− 5. Before the first admission to trading or before the first day of trading of a share or depositary receipt, the competent authority of the trading venue where that financial instrument is to be first admitted to trading or is to be first traded shall estimate the average daily number of transactio…
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+ **6.** No later than six weeks after the first day of trading of the share or depositary receipt, the competent authority of the trading venue where the financial instrument was first admitted to trading or was first traded on a trading venue shall calculate and ensure the publication of the average…
− 6. No later than six weeks after the first day of trading of the share or depositary receipt, the competent authority of the trading venue where the financial instrument was first admitted to trading or was first traded on a trading venue shall calculate and ensure the publication of the average dai…
+ **7.** For the purposes of this Article, the average daily number of transactions for a financial instrument shall be calculated by dividing, for the relevant time period and the relevant trading venue, the total number of transactions in that financial instrument by the number of trading days.
− 7. For the purposes of this Article, the average daily number of transactions for a financial instrument shall be calculated by dividing, for the relevant time period and the relevant trading venue, the total number of transactions in that financial instrument by the number of trading days.
+ **8.** The competent authority for a specific share may adjust the average daily number of transactions calculated or estimated by that competent authority for that share in accordance with the procedure set out in paragraphs 1 to 7 where all of the following conditions are met:(a) the trading venue…
− 8. The competent authority for a specific share may adjust the average daily number of transactions calculated or estimated by that competent authority for that share in accordance with the procedure set out in paragraphs 1 to 7 where all of the following conditions are met:
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− (a) the trading venue with the highest turnover for that share is located in a third country;
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− (b) where that average daily number of transactions has been calculated and published in accordance with the procedure set out in paragraphs 1 to 4, it is equal to or greater than one.
+ **9.** The competent authority that adjusted the average daily number of transactions for a share in accordance with paragraph 8 shall ensure the publication of that adjusted average daily number of transactions. Prior to that publication, the competent authority shall communicate the adjusted avera…
− 9. The competent authority that adjusted the average daily number of transactions for a share in accordance with paragraph 8 shall ensure the publication of that adjusted average daily number of transactions. Prior to that publication, the competent authority shall communicate the adjusted average d…
+ **10.** Trading venues shall apply the tick sizes of the liquidity band corresponding to the adjusted average daily number of transactions from the second calendar day after its publication.
− 10. Trading venues shall apply the tick sizes of the liquidity band corresponding to the adjusted average daily number of transactions from the second calendar day after its publication.
− Corporate actions
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− (Article 49(1) and (2) of Directive 2014/65/EU)
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+ **1.** The competent authority of the trading venue where a share or depositary receipt was first admitted to trading or has been traded for the first time before the date of application of Regulation (EU) No 600/2014, shall collect the necessary data and calculate and ensure the publication of the …
− 1. The competent authority of the trading venue where a share or depositary receipt was first admitted to trading or has been traded for the first time before the date of application of Regulation (EU) No 600/2014, shall collect the necessary data and calculate and ensure the publication of the aver…
+ **2.** The calculations referred to in paragraph 1(a) shall be carried out as follows:(a) where the date on which shares or depositary receipts are traded for the first time on a trading venue within the Union is a date not less than 16 weeks prior to the date of application of Regulation (EU) No 60…
− (a) no later than 4 weeks prior to the date of application of Regulation (EU) No 600/2014 where the date on which shares or depositary receipts are traded for the first time on a trading venue within the Union is a date not less than 10 weeks prior to the date of application of Regulation (EU) No 60…
+ **3.** The tick sizes of the liquidity band corresponding to the published average daily number of transactions referred to in paragraph 1 shall be applied until 1 April of the year following the date of application of Regulation (EU) No 600/2014. During that period, competent authorities shall ensu…
− (b) no later than the date of application of Regulation (EU) No 600/2014 where the date on which financial instruments are traded for the first time on a trading venue within the Union is a date falling within the period commencing 10 weeks prior to the date of application of Regulation (EU) No 600/…
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− 2. The calculations referred to in paragraph 1(a) shall be carried out as follows:
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− (a) where the date on which shares or depositary receipts are traded for the first time on a trading venue within the Union is a date not less than 16 weeks prior to the date of application of Regulation (EU) No 600/2014, the calculation shall be based on data available for a 40-week reference perio…
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− (b) where the date on which shares or depositary receipts are traded for the first time on a trading venue within the Union is a date within the period commencing 16 weeks prior to the date of application of Regulation (EU) No 600/2014 and ending 10 weeks prior to the date of application of Regulati…
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− (c) where the date on which shares or depositary receipts are traded for the first time on a trading venue within the Union is a date falling within the period commencing 10 weeks prior to the date of application of Regulation (EU) No 600/2014 and ending on the day preceding the date of application …
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− 3. The tick sizes of the liquidity band corresponding to the published average daily number of transactions referred to in paragraph 1 shall be applied until 1 April of the year following the date of application of Regulation (EU) No 600/2014. During that period, competent authorities shall ensure t…
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− This Regulation shall be binding in its entirety and directly applicable in all Member States.
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− ### ANNEX
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− **Tick size table**
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− |  | Liquidity bands |  |  |  |  |  |
− | --- | --- | --- | --- | --- | --- | --- |
− | Price ranges | 0 ≤ Average daily number of transactions < 10 | 10 ≤ Average daily number of transactions < 80 | 80 ≤ Average daily number of transactions < 600 | 600 ≤ Average daily number of transactions < 2 000 | 2 000 ≤ Average daily number of transactions < 9 000 | 9 000 ≤ Average daily number…
− | 0 ≤ price < 0,1 | 0,0005 | 0,0002 | 0,0001 | 0,0001 | 0,0001 | 0,0001 |
− | 0,1 ≤ price < 0,2 | 0,001 | 0,0005 | 0,0002 | 0,0001 | 0,0001 | 0,0001 |
− | 0,2 ≤ price < 0,5 | 0,002 | 0,001 | 0,0005 | 0,0002 | 0,0001 | 0,0001 |
− | 0,5 ≤ price < 1 | 0,005 | 0,002 | 0,001 | 0,0005 | 0,0002 | 0,0001 |
− | 1 ≤ price < 2 | 0,01 | 0,005 | 0,002 | 0,001 | 0,0005 | 0,0002 |
− | 2 ≤ price < 5 | 0,02 | 0,01 | 0,005 | 0,002 | 0,001 | 0,0005 |
− | 5 ≤ price < 10 | 0,05 | 0,02 | 0,01 | 0,005 | 0,002 | 0,001 |
− | 10 ≤ price < 20 | 0,1 | 0,05 | 0,02 | 0,01 | 0,005 | 0,002 |
− | 20 ≤ price < 50 | 0,2 | 0,1 | 0,05 | 0,02 | 0,01 | 0,005 |
− | 50 ≤ price < 100 | 0,5 | 0,2 | 0,1 | 0,05 | 0,02 | 0,01 |
− | 100 ≤ price < 200 | 1 | 0,5 | 0,2 | 0,1 | 0,05 | 0,02 |
− | 200 ≤ price < 500 | 2 | 1 | 0,5 | 0,2 | 0,1 | 0,05 |
− | 500 ≤ price < 1 000 | 5 | 2 | 1 | 0,5 | 0,2 | 0,1 |
− | 1 000 ≤ price < 2 000 | 10 | 5 | 2 | 1 | 0,5 | 0,2 |
− | 2 000 ≤ price < 5 000 | 20 | 10 | 5 | 2 | 1 | 0,5 |
− | 5 000 ≤ price < 10 000 | 50 | 20 | 10 | 5 | 2 | 1 |
− | 10 000 ≤ price < 20 000 | 100 | 50 | 20 | 10 | 5 | 2 |
− | 20 000 ≤ price < 50 000 | 200 | 100 | 50 | 20 | 10 | 5 |
− | 50 000 ≤ price | 500 | 200 | 100 | 50 | 20 | 10 |
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− (1) Commission Delegated Regulation (EU) 2017/587 of 14 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on transparency requirements for trading venues and investment f…
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− (2) Commission Delegated Regulation (EU) 2017/590 of 28 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the reporting of transactions to competent authorities (see page 449 of this Official Journal).