Under MiFID II, what is the status of orders pending disclosure in an order management facility?
Understand the Problem
The question is inquiring about the regulations set by MiFID II regarding orders that are awaiting disclosure in an order management facility. Specifically, it seeks to clarify the status of these orders and how they are treated under this regulatory framework.
Answer
Orders pending disclosure in an order management facility are subject to pre-trade transparency waiver under MiFID II.
Under MiFID II, orders held in an order management facility pending disclosure are subject to waivers on pre-trade transparency obligations.
Answer for screen readers
Under MiFID II, orders held in an order management facility pending disclosure are subject to waivers on pre-trade transparency obligations.
More Information
MiFID II allows for certain waivers from transparency obligations, especially to prevent negative market impact for larger orders that could alter pricing conditions if disclosed pre-trade.
Tips
A common mistake is assuming all orders are subject to the same transparency requirements, while certain waivers apply depending on the order size and type.
Sources
- MiFID II & MiFIR Technical Standards - Luxembourg Stock Exchange - luxse.com
- Commission Delegated Regulation (EU) 2017/587 - FCA Handbook - handbook.fca.org.uk
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