Two of the EU’s most complicated laws have been given some more clarification regarding exchange-traded funds.
The European Securities and Markets Authority (ESMA) has updated its Q&As regarding transparency and market structures issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
The update clarifies that for exchange-trade funds there is only one average daily turnover band from which to choose the highest threshold to be used to calculate the average value of transactions.
With this update, ESMA hopes to clarify the market structures issues on how to interpret the application of the tick size regime to periodic auctions.
ESMA’s Q&As is one of the tools used by the financial regulator to promote common supervisory approaches and practices in the application of MiFID II and MiFIR.
Both laws are complicated. It took the RegTech industry over 30,000 pages just to understand MiFID II.
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