On 13 February 2019, the European Commission adopted a Delegated Regulation amending Regulatory Technical Standard (RTS) 11 as regards the possibility to adjust the average daily number of transactions for a share where the trading venue with the highest turnover of that share is located outside the EU.
Article 49(3) of MiFID II requires the European Securities and Markets Authority (ESMA) to develop draft RTS to further specify tick sizes or tick size regimes for shares, depositary receipts, certain exchange traded funds, certificates and similar financial instruments. This Delegated Regulation further specifies the provisions to the calculation of the tick size for financial instruments traded or admitted to trading on an EU trading venue and a third country trading venue in cases where the most liquid trading venue by turnover is the trading venue located outside the EU.
The Delegated Regulation will next be considered by the European Parliament and the Council of the EU.