Chapter 8: Markets in Financial Instruments Regulation (MiFIR)

Question 1

MiFIR applies to:

Answer 1

• Investment firms
• Credit institutions for their investment services and activities
• Market operators and the venues they operate (the exchanges)

Question 2

The MiFIR regulation establishes uniform requirements in relation to:

Answer 2

Product intervention powers of:

• competent authorities
• ESMA
• EBA

Question 3

What information should be published by market operators for all equity instruments traded on their trading venue?

Answer 3

• Current bid and offer prices

* Depth of trading interest at those prices.

Question 4

Name one example where the obligation to make pre-trade information available may be waived.

Answer 4

For orders for which the scale exceeds normal market size.

Question 5

What should CySEC do prior to granting a waiver?

Answer 5

Will notify ESMA and other competent authorities of the intended use of the waiver and will provide an explanation of its functioning including details of the trading venues.

Question 6

Who is responsible to ensure that all derivatives are cleared by a central counterparty (CCP)?

Answer 6

The operator of a regulated market.

Question 7

When should ESMA publish information regarding the waivers?

Answer 7

Within five working days of the end of the calendar month.

Question 8

What is the minimum quote size that Systematic Internalizers may decide at which they will quote?

Answer 8

10% or more of the standard market size of the financial instrument traded on a trading venue.

Question 9

When should IFs that execute transactions in financial instruments report complete and accurate details of executed transactions to CySEC?

Answer 9

As soon as possible, but no later than the close of business of the next working day.

Question 10

For how long can an instrument be temporarily suspended by CySEC?

Answer 10

For a period of up to three months.

Question 11

When should Systematic Internalizers provide reference data related to the financial instruments?

Answer 11

Before trading commences.

Question 12

To which authorities does MiFIR give product intervention powers?

Answer 12

• Competent authorities
• ESMA
• European Bank Authority (EBA)

Question 13

For how long should Ifs jeep data relating to all orders and transactions in financial instruments that they have carried out?

Answer 13

For a period of 5 years.

Question 14

When should ESMA submit a report to EC about the arrangements of deferred trade publication?

Answer 14

Annually

Question 15

When do operators need to make public a transaction info?

Answer 15

The price, volume and time of execution of the transaction need to be made public as close to real-time as is technically possible.

Question 16

How often does ESMA monitor the application of the waivers?

Answer 16

On an annual basis.

Question 17

For which trading systems should market operators and IFs make pre-trade information available?

Answer 17

• Order-book
• Quote-driven
• Hybrid
• Periodic auction

Question 18

For which reason may the obligation to make pre-trade information available waived?

Answer 18

For orders that are large in scale compared to normal market size orders.

Question 19

Which is the minimum quote size the Systemic Internalizers will quote?

Answer 19

10% or more of the standard market size

Question 20

Who approves third-country derivatives’ trading venues?

Answer 20

EC

Question 21

Who maintains the register for all DRSPs in Europe?

Answer 21

ESMA