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---
title: "ESMA Q&A 1566 — Q&A — Maximum authorised deviation around the reference [Answer Published]"
shortTitle: "ESMA Q&A 1566 — Q&A — Maximum authorised deviation around the reference [Answer Published]"
answer_id: ESMA_QA_1566
topic: "Pre-trade transparency waivers"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFIR"
mifir_level3: true
mica_level2: false
legal_basis: "MiFIR"
date: 15 November 2017
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1566
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 15 November 2017"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1566"
check_status: matched
verified: true
last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "ESMA"
  published_by: "ESMA"
  published_in: "ESMA Q&A tool"
  evidence:
    prepared_by: "ESMA Answer"
    locator: "ESMA Q&A entry ESMA_QA_1566: field 'ESMA Answer', no 'Answer provided by' line"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
dates:
  published_on: "2017-11-15"
  question_submitted_on: "2017-11-15"
  locators:
    published_on: "ESMA Q&A Excel export ESMA_QA_1566, column 'Esma responses', date line"
    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1566, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer by ESMA, published in its Q&A tool · not legislation · published 15 Nov 2017 [Answer Published]**

*Answer Published · ESMA Q&A register, 15 November 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1566)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1566 — Q&A — Maximum authorised deviation around the reference \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1566 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 15 November 2017; question submitted 15 November 2017 |
| **Legal basis** | MiFIR |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Maximum authorised deviation around the reference price for negotiated transactions in illiquid equity instruments**

### Question

What is the maximum authorised deviation around the reference price to be used for negotiated transactions in illiquid instruments?

***

### Answer

\[ESMA 70-872942901-35 MiFIR transparency Q&A, Q&A 5.5\]

Article 4(1)(b)(ii) of MiFIR allows NCAs to grant pre-trade transparency waivers to trading venues for negotiated transactions in illiquid instruments where those negotiated transactions are dealt within a percentage of a suitable reference price.

ESMA is of the view that the parameters to be set by trading venues in accordance with Article 48(5) of MiFID II for halting trading can also be used as maximum limits for the purposes of Article 4(1)(b)(ii) of MiFIR. The parameters to be established for trading halts should be calibrated by taking into consideration the liquidity of financial instruments, the related market model and the type of users trading those instruments. A price movement beyond these limits would be considered significant enough to halt trading, therefore, ESMA considers these same parameters should be used as a proxy to assess the suitability of the reference price and the percentage deviation from it that can be used for negotiated transactions under Article 4(1)(b)(ii) of MiFIR. NCAs should not authorise trading venues to report negotiated transactions in illiquid financial instruments executed outside those limits.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1566)