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APA - Approved Publication Arrangement
NCA-approved mechanism for publishing trade reports on behalf of investment firms for OTC trades, satisfying MiFID II post-trade transparency requirements under Arts. 20-21.
ARM - Approved Reporting Mechanism
NCA-approved entity that submits MiFID II transaction reports to the NCA on behalf of investment firms. Mandatory for T+1 reporting under MiFID II Art. 26.
BBO - Best Bid and Offer
The national best bid and ask price at a single trading venue, used as a pre-trade transparency reference for order execution.
BBO - European Best Bid and Offer (EBBO)
Pan-EU consolidated best price used for reference price waivers (RFPT) and best-execution benchmarking. Will be provided as a standardised feed by the Consolidated Tape Provider (CTP).
CCP - Central Counterparty
Clearing house that interposes itself between trade counterparties under EMIR (EU 648/2012). Mandatory for standardised OTC derivatives under MiFID II Art. 29.
CIB - Corporate and Investment Banking
Division subject to information barrier (Chinese wall) obligations under MAR to prevent insider information flowing from corporate finance to trading desks.
CSDR - Central Securities Depositories Regulation
EU Regulation (909/2014) governing securities settlement and central securities depositories. Relevant for settlement fail management and buy-in penalties.
CTP - Consolidated Tape Provider
Single ESMA-authorised entity that consolidates post-trade transparency data from all EU venues and APAs into a harmonised data stream. Introduced by the MiFIR Review (Reg. 2024/791); bond CTP first established.
DVC - Double Volume Cap
MiFIR Art. 5 cap on dark trading under RFPT and NLIQ waivers (4% per venue / 8% EU-wide thresholds). ESMA monitors monthly and suspends waiver use for 6 months when caps are breached.
EBBO - European Best Bid and Offer
Pan-EU consolidated best price for reference price waivers and best-execution benchmarking. Will be standardised via the CTP regime introduced by MiFIR Review 2024.
EMIR - European Market Infrastructure Regulation
EU Regulation (648/2012) governing OTC derivatives, central counterparties, and trade repositories. Requires mandatory clearing and bilateral risk mitigation for non-cleared OTC derivatives.
ESMA - European Securities and Markets Authority
EU securities regulator that publishes MiFID II/MiFIR RTS and ITS. Technical standards are directly applicable as EU law (RTS 22, RTS 25, RTS 27/28).
FCA - Financial Conduct Authority
UK National Competent Authority (post-Brexit). Operates UK MiFID equivalent (UK MiFIR) for UK-authorised investment firms. Not an EU NCA.
FIRDS - Financial Instrument Reference Data System
ESMA database of ISINs and reference data for instruments admitted to trading on EU venues. Mandatory for ISIN validation in MiFID II RTS 22 transaction reports.
HFT - High-Frequency Trading
Subset of algorithmic trading characterised by ultra-low latency (gateway-to-gateway ≤100 µs), extremely high order-to-trade ratios, and intraday position turnover. Subject to RTS 6 and RTS 25.
ISIN - International Securities Identification Number
ISO 6166 12-character alphanumeric code uniquely identifying a financial instrument globally. Mandatory instrument identifier in MiFID II RTS 22 transaction reports (Field 41).
KID - Key Information Document
PRIIPs-mandated standardised 3-page disclosure document (Regulation EU 1286/2014). Must present performance scenarios, costs, SRI, and recommended holding period before any PRIIP transaction.
KIID - Key Investor Information Document
UCITS Directive-mandated 2-page disclosure document presenting fund objectives, risk/reward profile (SRRI), charges, and past performance. Must be updated at least annually.
LEI - Legal Entity Identifier
ISO 17442 20-character legal entity identifier mandatory in MiFID II RTS 22 reports (Fields 4, 7, 9). Must be renewed annually with GLEIF; a LAPSED status invalidates transaction reports.
LIS - Large in Scale
Order size threshold triggering pre-trade transparency waivers (MiFIR Art. 4 LIS waiver) and post-trade deferred publication. ESMA publishes LIS thresholds by instrument class.
MAR - Market Abuse Regulation
EU Regulation (596/2014) prohibiting insider dealing, market manipulation, and unlawful disclosure of inside information. MiFID II transaction reports are the primary surveillance data source for NCAs.
MiFID II - Markets in Financial Instruments Directive II
EU Directive 2014/65/EU - core EU investment services directive. Governs authorisation, best execution, client categorisation, product governance, algorithmic trading, and commodity position limits.
MiFIR - Markets in Financial Instruments Regulation
EU Regulation (600/2014) - directly applicable companion regulation to MiFID II. Governs pre/post-trade transparency (Arts. 3-21), DVC (Art. 5), waivers (Art. 4), and Share Trading Obligation (Art. 23).
MTF - Multilateral Trading Facility
NCA-authorised multilateral system that matches third-party buying and selling interests in a non-discretionary manner (MiFID II Art. 4(1)(22)). Subject to transparency, reporting, and MAR surveillance obligations.
NCA - National Competent Authority
Financial regulator in each EU member state that receives RTS 22 reports via ARM, supervises venue authorisations, and applies MiFID II nationally.
OTF - Organised Trading Facility
Multilateral system for non-equity instruments (bonds, structured products, derivatives, emission allowances) under MiFID II Art. 4(1)(23). Operator applies discretionary execution methodology.
PRIIPs - Packaged Retail and Insurance-based Investment Products
EU Regulation (1286/2014) requiring a KID for packaged retail and insurance-based investment products. KID must be delivered to retail clients before transaction.
RTS - Regulatory Technical Standard
Binding technical standard adopted by ESMA under MiFID II/MiFIR authority. Directly applicable as EU law (e.g., RTS 22 transaction reporting, RTS 25 clock sync, RTS 27/28 execution quality).
SI - Systematic Internaliser
Investment firm executing client orders against own capital outside a regulated market or MTF, on an organised, frequent, systematic, and substantial basis (MiFID II Art. 4(1)(20)). Must publish binding quotes for liquid equities up to SMS.
STO - Share Trading Obligation
Obligation under MiFIR Art. 23 to execute share transactions on a regulated market, MTF, SI, or equivalent third-country venue. Prevents routing to non-compliant OTC venues.
STOR - Suspicious Transaction and Order Report
Report submitted by investment firms to their NCA under MAR Art. 16 when they suspect market abuse. Primary data source for NCA market manipulation and insider dealing surveillance.
UCITS - Undertakings for Collective Investment in Transferable Securities
EU-regulated investment fund marketable to retail investors across the EU (Directive 2009/65/EC). Subject to investment restrictions and mandatory annual KIID update obligation.