12.13.2017

MiFID II: Commission Adopts Equivalence Decisions

The European Commission today recognised several trading venues in Australia, Hong Kong and the United States as eligible for compliance with the trading obligation for shares set out in the new Markets in Financial Instruments Directive (MiFID II), which will apply as of 3 January 2018.

The EU trading obligation applies to shares listed on both exchanges in the recognised countries and in the EU (“dual listings”), on condition that trading in the EU constitutes a significant percentage of the share’s global trading volume.

Today’s decisions ensure that MiFID II investment firms can continue to access the liquidity in dual listed shares outside the EU. There is currently no evidence that shares only listed on exchanges in Australia, Hong Kong and the United States (“single listings”) trade significantly in the EU. Therefore, trading in these shares can continue as previously.

Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union said: “It is important that European firms can trade shares on international markets. Access to major international trading venues will boost the EU’s competitive position as a financial centre. It is an important step in building a vibrant Capital Markets Union”.

The European Commission is assessing the EU trading volumes of shares listed in other financial centres around the world. These assessments should be concluded shortly and decisions will be adopted where necessary.

Source: European Commission

 

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