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updated 19 Dec 2025 [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":"2017-04-03","last_updated":"2025-12-19","question_submitted_on":"2017-04-03","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1556, column 'Esma responses', date line (earliest)","last_updated":"ESMA Q&A Excel export ESMA_QA_1556, column 'Esma responses', date line (latest)","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1556, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1556","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifir/level-3/q-and-a/esma/esma-qa-1556-trading-obligation-for-shares.md","body_sha256":"0d5a0b9252dff3dbd8be3f2bb82753da400316528d2ef5feac9501dff8b9c043"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1556 — Q&A — Trading obligation for shares [Answer Published]\"\nshortTitle: \"ESMA Q&A 1556 — Q&A — Trading obligation for shares [Answer Published]\"\nanswer_id: ESMA_QA_1556\ntopic: \"Equity transparency\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFIR\"\nmifir_level3: true\nmica_level2: false\nlegal_basis: \"MiFIR\"\ndate: 3 April 2017\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1556\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 3 April 2017\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1556\"\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_1556: 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: \"2017-04-03\"\n  last_updated: \"2025-12-19\"\n  question_submitted_on: \"2017-04-03\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1556, column 'Esma responses', date line (earliest)\"\n    last_updated: \"ESMA Q&A Excel export ESMA_QA_1556, column 'Esma responses', date line (latest)\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1556, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 3 Apr 2017, updated 19 Dec 2025 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 3 April 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1556)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1556 — Q&A — Trading obligation for shares \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1556 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 3 April 2017; updated 19 December 2025; question submitted 3 April 2017 |\n| **Legal basis** | MiFIR |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Trading obligation for shares**\n\n### Question\n\na) Are primary market transactions, block trades and share buy-backs subject to the trading obligation for shares?\n\nb) Are accelerated book-building transactions subject to the trading obligation for shares?\n\nc) Are an acquisition or disposal of shares made under employee share incentive plans subject to trading obligation for shares?\n\nd) Are share purchases/sales carried out exclusively to manage operational errors subject to the trading obligation for shares?\n\ne) Are sales and purchases of “odd lot shares” (e.g. a quantity of shares which is not a multiple of the minimum lot) as a result of a corporate action subject to the trading obligation for shares?\n\n***\n\n### Answer\n\na. Primary market transactions (see Q&A 4 within the section on General Q&As on transparency topics) are not subject to the MiFIR transparency requirements and the trading obligation for shares. Block trades and share buy backs on the other hand are secondary market transactions and therefore subject to the trading obligation for shares.\n\nb. Accelerated book-building transactions can occur through:\n\nnew shares issued in connection with a share capital increase; or\n\na sale of shares owned by a significant shareholder.\n\nIn the first case, the ABB procedure is carried out in the context of a primary market transaction and in such respect should be considered out of the STO scope.\n\nIn the second case, the ABB procedure is carried out in the context of a secondary market transaction. Therefore, it should be considered subject to the STO. However, those transactions can benefit from a waiver under Article 4(b)(iii) of MiFIR (NT3) or under Article 4(c) of MiFIR (LIS).\n\nc. Such an acquisition or disposal is not subject to the trading obligation for shares as long as it does not qualify as “transaction” under the definition of Article 2(5)(m) of RTS 22. Therefore, an acquisition or disposal under an employee share incentive plan where all the criteria under points (i) to (iv) of Article2(5)(m) of RTS 22 are met, does not quality as a transaction. Therefore, it is not subject to the STO.\n\nd. Yes. This is the case when there is the need to integrate a quantity of shares previously purchased/sold on the market because of an erroneous quantity of shares purchased/sold. This type of transaction might be executed in the CLOB or fall under the definition of negotiated transaction under Article 6 of RTS 1. In all cases, it is subject to the STO.\n\ne. No. It is not viable to carry out such sales and purchases on a trading venue for quantities of shares that are not multiples of the minimum lot deriving from a corporate action such as a merger or a de-merger. The lots of derivatives pre-corporate actions are indeed adjusted by a factor to allow the purchase or sale of an equivalent amount post corporate actions. As a result, sales and purchases on a trading venue for quantity of shares that are not multiples of the minimum lot are not subject to the STO.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1556)\n"}