ESMA publishes MiFID II Q&A clarifying trading obligation for shares

ESMA has updated its MiFID II Q&As to clarify the application of the trading obligation for shares to trade certain instruments on-venue.

ESMA confirms that all EU investment firms that are part of a chain of transmission should ensure that the ultimate execution of the order complies with the trading obligation requirements under article 23(1) of MiFIR.  ESMA notes that this may cause issues for investment firms that wish to undertake trades in non-EEA shares in the primary listing venues of such shares, and indicates that ESMA and the European Commission are working closely together to resolve these issues, the European Commission preparing equivalence decisions for non-EU jurisdictions whose shares are traded systematically and frequently in the EU.