Briefing Note on Tick Sizes in MiFID II

November 25, 2014

When MiFID II is applicable in January 2017, the tick size rules will be governed by ESMA. The same minimum rules will apply on all EU markets. The rules will rely on metrics rather than discretionary decision by the venues and/or the members.

Two different models are discussed by ESMA and both of them would result in a decrease in tick size for many Nordic stocks. There is still room to discuss and influence some of the parameters in the proposed models in order to reduce the most negative consequences of a decrease in tick-size.

The NSA Briefing Note provides arguments for a conservative implementation of the parameters for a new tick size regime compared to what is proposed by ESMA.

NSA Briefing Note on Tick Sizes