MOEX aligns Equity Market tick size regime with MiFID II requirements

moex moscow exchange

To increase the effectiveness of the equity market microstructure Moscow Exchange (MOEX) has announced that it has aligned its tick size regime with MiFID II.

MOEX will apply the new tick size regime and Decimals parameter from 1 August 2018 in the following trading modes:

  • Main trading mode Т+ (“Т+2” order book)
  • Odd lots trading mode
  • Dark pool trading mode
  • Equities D — Main trading mode Т+
  • Negotiated trading mode(NTM)
  • Equities D (NTM) trading mode
  • NTM with CCP trading mode

The new methodology ensures that European and Russian regulations are in alignment in this area. This reduces the possible regulatory issues that may arise for European entities when operating in the Russian market due to this particular MiFID II requirement. At the same time by adopting a recognized standard trading on Moscow Exchange will be easier and better. The new approach to setting the tick size was approved by the MOEX Securities Market committee.

The new methodology includes:

  • The tick size multiple of 2. Starting 1 August 2018 the tick size equals (1,2,5)*10N, where N – integer;
  • Increasing the number of price ranges to 25, and the ranges of liquidity – up to 7;
  • For each liquidity range a recommended range price tick sizes in the spread is established;
  • The maximum allowed relative tick size – 1%

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MOEX aligns Equity Market tick size regime with MiFID II requirements

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