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its Q&A tool · not legislation · published 8 Jan 2024 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2024-01-08","question_submitted_on":"2024-02-12","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_2104, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_2104, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/2104","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-2104-market-making-in-securitised-derivatives.md","body_sha256":"7118d3e14659c0d7b12b068a8b6d49bb1d28e308d42d2d7a7421dcca9d1d53ea"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 2104 — Q&A — Market making in securitised derivatives [Answer Published]\"\nshortTitle: \"ESMA Q&A 2104 — Q&A — Market making in securitised derivatives [Answer Published]\"\nanswer_id: ESMA_QA_2104\ntopic: \"Direct Electronic Access and algorithmic trading\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"Article 2(1)(b)\"\ndate: 12 February 2024\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/2104\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 12 February 2024\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/2104\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_2104: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2024-01-08\"\n  question_submitted_on: \"2024-02-12\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_2104, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_2104, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 8 Jan 2024 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 12 February 2024 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/2104)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 2104 — Q&A — Market making in securitised derivatives \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_2104 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 8 January 2024; question submitted 12 February 2024 |\n| **Legal basis** | Article 2(1)(b) |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Market making in securitised derivatives**\n\n### Question\n\nAre there technical circumstances related to securitised derivatives under which it can be considered that a market maker posting one-way quotes is considered to meet the obligations on market making agreements set out in Article 2 of RTS 8?\n\n***\n\n### Answer\n\nArticle 2 of RTS 8 establishes a series of obligations for market makers including to post “simultaneous two-way quotes” in at least one financial instrument for at least 50% of daily trading hours during which continuous trading takes place.\n\nESMA notes that for securitised derivatives there are instances where it is not technically possible for the market makers to offer both bid and offer quotes. This is the case where all the issued securities have been sold and no more securities can be issued under the prospectus, thus the market maker’s inventory is sold out. In such cases, the market maker is in the position to only post bid quotes for a securitised derivative. Only under this limited circumstance, the requirement to post “simultaneous two-way quotes” under Article 2 of RTS 8 is considered to be met.\n\nThis is without prejudice to the exceptional circumstances referred to in Article 3 of RTS 8, under which market makers could provide one-way quotes.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/2104)\n"}