Cap. 345 Art. 4GTick sizes.

(1) Regulated markets shall adopt tick size regimes in shares, depositary receipts, exchange-traded funds, certificates and other similar financial instruments and in any other financial instrument for which regulatory technical standards are developed by

ESMA:

Provided that the application of tick sizes shall not prevent regulated markets from matching orders large in scale at mid-point within the current bid and offer prices.

(2) The tick size regimes referred to in sub-article (1) shall:

(a) be calibrated to reflect the liquidity profile of the financial instrument in different markets and the average bid-ask spread, taking into account the desirability of enabling reasonably stable prices without unduly constraining further narrowing of spreads;

(b) adapt the tick size for each financial instrument appropriately.

(3) In respect of shares with an International Securities Identification Number (ISIN) issued outside the European Economic Area (EEA), or shares which have an EEA ISIN and which are traded on a third-country venue in the local currency or in a non-EEA currency, as referred to in point (a) of Article 23(1) of MiFIR for which the venue that is the most relevant market in terms of liquidity is in a third country, regulated markets may provide for the same tick size that applies in that venue.