Article 5 — Volume cap — compare

1.In order to ensure that theTrading venues shall suspend their use of the waivers provided forwaiver referred to in Article  4(1), point (a), where the percentage of trading in a financial instrument in the Union carried out and 4(1)(b)(i) does not unduly harm price formation, trading under that waiver exceeds 7 % of the total volume of trading in that financial instrument in the Union. Trading venues shall base their decision to suspend the use of that waiver on the data published by ESMA in accordance with paragraph 4 of this Article, and shall take such decision within two working days of the publication of those waivers is restricted as follows:data and for a period of three months.

2.When the percentage of trading in a financial instrument carried out on a trading venue under the waivers has exceeded the limit referred to in paragraph 1(a), the competent authority that authorised the use of those waivers by that venue shall within two working days suspend their use on that venue in that financial instrument based on the data published by ESMA referred to in paragraph 4, for a period of six months. [in_force → deleted]

3.When the percentage of trading in a financial instrument carried out on all trading venues across the Union under those waivers has exceeded the limit referred to in paragraph 1(b), all competent authorities shall within two working days suspend the use of those waivers across the Union for a period of six months. [in_force → deleted]

4.ESMA shall publish within fiveseven working days of the end of March, June, September and December of each calendar month,year the total volume of Union trading in the Union per financial instrument in the previous 12 months, the percentagepercentages of trading in aeach financial instrument carried out across the Union under those waivers and on each trading venuethe waiver referred to in the previous 12 monthsArticle 4(1), point (a), and the methodology that is used to derive those percentages of trading in each financial instrument.

5.In the event that the report referred to in paragraph 4 identifies any trading venue where trading in any financial instrument carried out under the waivers has exceeded 3,75 % of the total trading in the Union in that financial instrument, based on the previous 12 months’ trading, ESMA shall publish an additional report within five working days of the 15th day of the calendar month in which the report referred to in paragraph 4 is published. That report shall contain the information specified in paragraph 4 in respect of those financial instruments where 3,75 % has been exceeded. [in_force → deleted]

6.In the event that the report referred to in paragraph 4 identifies that overall Union trading in any financial instrument carried out under the waivers has exceeded 7,75 % of the total Union trading in the financial instrument, based on the previous 12 months’ trading, ESMA shall publish an additional report within five working days of the 15th on the day of the calendar month in which the report referred to in paragraph 4 is published. That report shall contain the information specified in paragraph 4 in respect of those financial instruments where 7,75 % has been exceeded. [in_force → deleted]

7.In order to ensure a reliable basis for monitoring the trading taking place under those waivers the waiver referred to in Article 4(1), point (a), and for determining whether the limitslimit referred to in paragraph 1 havehas been exceeded, operators of trading venues shall be obligated to have in place systems and procedures to: enable the identification of all trades which have taken place on their venue under that waiver.

8.The period for the publication of trading data by ESMA, and for which trading in a financial instrument under those waiversthe waiver is to be monitored shall start on 3 January 2017. Without prejudice to Article 4(5), competent authorities shall be empowered to suspend the use of those waivers from the date of application of this Regulation and thereafterstart on a monthly basis29 September 2025.

9.ESMA shall develop draft regulatory technical standards to specify the method, including the flagging of transactions, by which it collates, calculates and publishes the transaction data, as outlined in paragraph 4, in order to provide an accurate measurement of the total volume of trading per financial instrument and the percentages of trading that use those waiversthe waiver across the Union and per trading venue.

10.By 29 September 2027, and every year thereafter, ESMA shall submit to the Commission a report assessing the volume-cap threshold set in paragraph 1, taking into account financial stability, international best practices, the competitiveness of Union firms, the significance of the market impact and the efficiency of price formation.