in force 2024-03-28 MODIFIED+340 −181§
Amended by Regulation (EU) 2024/791 32024R0791
applies from: unchanged
The scope of paragraph 1 changed from covering shares admitted to trading on a regulated market or traded on a trading venue to covering shares that have a European Economic Area ISIN and are traded on a trading venue.
Point (a) of the exception was changed from describing trades that are non-systematic, ad-hoc, irregular and infrequent to describing shares traded on a third-country venue in the local currency or in a non-EEA currency.
Point (b) was reworded from referring to trades carried out between eligible and/or professional counterparties to referring to trades carried out between eligible counterparties, between professional counterparties, or between eligible and professional counterparties, in both cases still qualified by not contributing to the price discovery process.
Cited: Art. 23, v1 · Art. 23, v2
text before / after
02014R0600-20240109 → 02014R0600-20240328
Article 23
Trading obligation for investment firms
1. An investment firm shall ensure that the trades it undertakes in shares admitted to trading on which have a regulated market or European Economic Area (EEA) International Securities Identification Number (ISIN), and which are traded on a trading venue shall venue, take place on a regulated market, MTF or an MTF, a systematic internaliser, internaliser or a third-country trading venue assessed as equivalent in accordance with Article 25(4)(a) 25(4), point (a), of Directive 2014/65/EU, as appropriate, unless their characteristics include that they: unless:
(a) those shares are non-systematic, ad-hoc, irregular and infrequent; traded on a third-country venue in the local currency or in a non-EEA currency; or
(b) those trades are carried out between eligible and/or counterparties, between professional counterparties or between eligible and professional counterparties and do not contribute to the price discovery process.
2. An investment firm that operates an internal matching system which executes client orders in shares, depositary receipts, ETFs, certificates and other similar financial instruments on a multilateral basis must ensure it is authorised as an MTF under Directive 2014/65/EU and comply with all relevant provisions pertaining to such authorisations.
3. ESMA shall develop draft regulatory technical standards to specify the particular characteristics of those transactions in shares that do not contribute to the price discovery process as referred to in paragraph 1, taking into consideration cases such as:
(a) non-addressable liquidity trades; or
(b) where the exchange of such financial instruments is determined by factors other than the current market valuation of the financial instrument.
ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.