MIR 3.5.7 Waivers based on market model and type of order or transaction

Waivers may be granted by the Regulator in respect of shares, depository receipts, ETFs, certificates and other similar Financial Instruments, for any of the following:

(a) systems matching orders based on a trading methodology by which the price of the Financial Instrument is derived from the trading venue where that Financial Instrument was first admitted to trading or the most relevant market in terms of liquidity, where that reference price is widely published and is regarded by market participants as a reliable reference price;
(b) systems that formalise negotiated transactions, which are:
(i) made within the current volume weighted spread reflected on the order book or the quotes of the market makers of the trading venue operating that system, subject to a volume cap to be determined by the Regulator to ensure that the use of this waiver does not unduly harm price formation;
(ii) in an illiquid share, depository receipt, ETF, certificate or other Financial Instrument that does not fall within the meaning of a liquid market, and are dealt within a percentage of a suitable reference price, being a percentage and a reference price set in advance by the system operator; and
(iii) subject to conditions other than the current market price of that Financial Instrument;
(c) orders that are large in scale compared with normal market size; or
(d) orders held in an order management facility of the Recognised Investment Exchange pending disclosure.

Waivers may be granted by the Regulator in respect of other Financial Instruments, for any of the following:

(e) orders that are large in scale compared with normal market size; and orders held in an order management facility of the Recognised Investment Exchange pending disclosure;
(f) actionable indications of interest in request-for-quote and voice trading systems that are above a size specific to the Financial Instrument, which would expose liquidity providers to undue risk and takes into account whether the relevant market participants are retail or wholesale investors; or
(g) Financial Instruments for which there is not a liquid market.