in force 2024-03-28 MODIFIED+1,459 −1,624§
Amended by Regulation (EU) 2024/791 32024R0791
applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)
dates added to the text: 2025-03-29, 2025-09-29, 2027-09-29 · dates removed: 2015-07-03, 2017-01-03
The dual volume cap mechanism, with separate 4% per-venue and 8% Union-wide thresholds and a six-month suspension period, is replaced by a single 7% Union-wide threshold applied to the double volume cap waiver, with suspension decided by trading venues themselves for a period of three months.
The ESMA publication cycle changes from monthly reporting within five working days to quarterly reporting (end of March, June, September and December) within seven working days, and the monitoring start date, the regulatory technical standards submission deadline, and the delegation of power provisions are updated with new dates and a new supplementing power, while a new paragraph 10 adds a recurring ESMA reporting and Commission delegated-act mechanism for adjusting the volume-cap threshold.
References throughout to the waivers in Article 4(1)(a) and 4(1)(b)(i) are narrowed to refer only to the waiver in Article 4(1), point (a), and the operators' obligation in paragraph 7 is simplified to identifying trades under that single waiver without the separate percentage-compliance obligation.
Cited: Art. 5, v1 · Art. 5, v2
text before / after
02014R0600-20240109 → 02014R0600-20240328
Article 5
Volume Cap Mechanism cap
1. In order to ensure that the Trading venues shall suspend their use of the waivers provided for waiver referred to in Article 4(1)(a) and 4(1)(b)(i) does not unduly harm price formation, trading under those waivers is restricted as follows:
(a) 4(1), point (a), where the percentage of trading in a financial instrument in the Union carried out on a trading venue under those waivers shall be limited to 4 that waiver exceeds 7 % of the total volume of trading in that financial instrument in the Union. Trading venues shall base their decision to suspend the use of that waiver on all trading venues across the Union over the previous 12 months.
(b) overall Union trading in a financial instrument carried out under those waivers shall be limited to 8 % of the total volume of trading in that financial instrument on all trading venues across the Union over the previous 12 months.
That volume cap mechanism shall not apply to negotiated transactions which are in a share, depositary receipt, ETF, certificate or other similar financial instrument for which there is not a liquid market as determined data published by ESMA in accordance with Article 2(1)(17)(b) paragraph 4 of this Article, and are dealt shall take such decision within two working days of the publication of those data and for a percentage period of a suitable reference price as referred to in Article 4(1)(b)(ii), or to negotiated transactions that are subject to conditions other than the current market price of that financial instrument as referred to in Article 4(1)(b)(iii). three months.
2. When the percentage of trading in a financial instrument carried out on a trading venue under the waivers has exceeded the limit referred to in paragraph 1(a), the competent authority that authorised the use of those waivers by that venue shall within two working days suspend their use on that venue in that financial instrument based on the data published by ESMA referred to in paragraph 4, for a period of six months.
3. When the percentage of trading in a financial instrument carried out on all trading venues across the Union under those waivers has exceeded the limit referred to in paragraph 1(b), all competent authorities shall within two working days suspend the use of those waivers across the Union for a period of six months.
4. ESMA shall publish within five seven working days of the end of March, June, September and December of each calendar month, year the total volume of trading in the Union trading per financial instrument in the previous 12 months, the percentage percentages of trading in a each financial instrument carried out across the Union under those waivers and on each trading venue the waiver referred to in the previous 12 months, Article 4(1), point (a), and the methodology that is used to derive those percentages. percentages of trading in each financial instrument.
5. In the event that the report referred to in paragraph 4 identifies any trading venue where trading in any financial instrument carried out under the waivers has exceeded 3,75 % of the total trading in the Union in that financial instrument, based on the previous 12 months’ trading, ESMA shall publish an additional report within five working days of the 15th day of the calendar month in which the report referred to in paragraph 4 is published. That report shall contain the information specified in paragraph 4 in respect of those financial instruments where 3,75 % has been exceeded.
6. In the event that the report referred to in paragraph 4 identifies that overall Union trading in any financial instrument carried out under the waivers has exceeded 7,75 % of the total Union trading in the financial instrument, based on the previous 12 months’ trading, ESMA shall publish an additional report within five working days of the 15th on the day of the calendar month in which the report referred to in paragraph 4 is published. That report shall contain the information specified in paragraph 4 in respect of those financial instruments where 7,75 % has been exceeded.
7. In order to ensure a reliable basis for monitoring the trading taking place under those waivers the waiver referred to in Article 4(1), point (a), and for determining whether the limits limit referred to in paragraph 1 have has been exceeded, operators of trading venues shall be obligated to have in place systems and procedures to:
(a) to enable the identification of all trades which have taken place on its their venue under those waivers; and
(b) ensure it does not exceed the permitted percentage of trading allowed under those waivers as referred to in paragraph 1(a) under any circumstances. that waiver.
8. The period for the publication of trading data by ESMA, and for which trading in a financial instrument under those waivers the waiver is to be monitored monitored, shall start on 3 January 2017. Without prejudice to Article 4(5), competent authorities shall be empowered to suspend the use of those waivers from the date of application of this Regulation and thereafter on a monthly basis. 29 September 2025.
9. ESMA shall develop draft regulatory technical standards to specify the method, including the flagging of transactions, by which it collates, calculates and publishes the transaction data, as outlined in paragraph 4, in order to provide an accurate measurement of the total volume of trading per financial instrument and the percentages of trading that use those waivers the waiver across the Union and per trading venue. Union.
ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015. 29 March 2025.
Power is delegated to the Commission to adopt supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.10. By 29 September 2027, and every year thereafter, ESMA shall submit to the Commission a report assessing the volume-cap threshold set in paragraph 1, taking into account financial stability, international best practices, the competitiveness of Union firms, the significance of the market impact and the efficiency of price formation.
The Commission is empowered to adopt delegated acts in accordance with Article 50 to amend this Regulation by adjusting the volume-cap threshold set in paragraph 1 of this Article. For the purposes of this subparagraph, the Commission shall take into account the report from ESMA referred to in the first subparagraph of this paragraph, international developments and standards agreed at Union or international level.