With effect of 3 January 2018 MiFID II requires that investment firms that pursue a market making strategy have to sign a market making requirement and are obliged to meet requirements as defined by the trading venue.
The requirements apply for:
- liquid instruments
- traded in continuous auction order book
Also MiFID market makers are required to flag order and quotes which are submitted to Wiener Börse AG with a "liquidity provision" (pdf-file 60 KB) flag in order to distinguish them from other order flows.
Under MiFID II there are two special conditions which have to be considered:
- Stressed market conditions (SMC) – RTS 8 Art. 5
Only affect liquid instruments and liquid ETFs & ETPs as defined in accordance with MiFIR Art. 2(1)(17)
- Exceptional circumstances (EMC) – RTS 8 Art. 3 and 4
Affect market making in all financial products traded at Wiener Börse AG