On May 24, 2016, a Commission Delegated Regulation outlining the RTS for the admission of financial instruments to trading on regulated markets was adopted by the European Commission. The adopted RTS will supplement the requirements set out in MiFID which requires a regulated market to have clear and transparent rules regarding the admission of financial instruments to trading. Such rules must ensure that any instruments admitted to trading are  capable of being traded in a fair, orderly and efficient manner (and in the case of transferable securities, are freely negotiable). The adopted RTS specify the criteria for transferable securities to be considered freely negotiable, lay down the criteria for transferable securities, units and shares in collective investment undertakings and derivatives to be traded in a fair, orderly and efficient manner and outline the requirement for regulated markets to adopt and publish a policy to verify issuers’ compliance with the obligations of initial, ongoing and ad hoc disclosures under EU law. The adopted RTS also confirms that emission allowances referred to under MiFID II are eligible for admission to trading with no further requirements and requires regulated markets to establish arrangements that are easily accessible and free of charge to facilitate participant or member access to information that has been made public.

The adopted RTS must be approved by the European Parliament and the Council of the European Union and be published in the Official Journal before they can enter into force.

The adopted RTS are available at:

http://ec.europa.eu/transparency/regdoc/rep/3/2016/EN/3-2016-3017-EN-F1-1.PDF