ESMA issues final guidelines on trading halts

Published: 29 June 2017

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The European Securities and Markets Authority (ESMA) has published its final report on the Guidelines regarding the calibration of circuit breakers and the publication of the trading halts under the Markets in Financial Instruments Directive (MiFID II).

These Guidelines are targeted at trading venues and competent authorities and provide further detail on the parameters that trading venues should consider for the calibration of their circuit breakers, considering not only trading halts but also order price collars.

The Guidelines also establish that trading venues should immediately make public the activation of a trading halt, the type of trading halt, the trading phase in which it was triggered, the eventual extension and the end of the halt.

NCAs to which these Guidelines apply must notify ESMA whether they comply or intend to comply with the Guidelines, within two months of the date of publication. If members have any questions, please contact Adam Jacobs, Oliver Robinson or Adele Rentsch.