ESMA Opinion clarifies application of pre-trade transparency and price determination in frequent batch auctions

ESMA Guidelines and Recommendations

Date: 18 December 2019

On 4 October 2019, the European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, published an opinion on frequent batch auctions (FBAs) and the double volume cap mechanism. ESMA’s Opinion reflects the conclusions of its Final Report on Periodic Auctions (June 2019) which identified several shortcomings of FBA systems in the area of pre-trade transparency and the price determination.