Recital 9

(9)While admission to trading on regulated markets is more suitable for larger and more mature companies, MTFs are generally more appropriate for SMEs. Furthermore, SME growth markets, a sub-category of MTFs, were specifically designed as SME-dedicated trading venues with a regulatory treatment that takes the particularities of SMEs into account. However, not all companies with securities listed on MTFs are SMEs. Directive 2014/65/EU of the European Parliament and of the Council ³ requires that for an MTF to be registered as an SME growth market, SMEs are to constitute at least 50 % of the issuers whose financial instruments are admitted to trading on that MTF. Companies other than SMEs generally have more liquid securities and hence their admission to MTFs enables MTFs to generate higher trading fees to maintain profitability of their business model. Nevertheless, to ensure clarity for investors, all issuers on SME growth markets, irrespective of their size, are currently subject to the same rules. The same is true of all issuers on other MTFs. It is therefore appropriate that the introduction of the right to adopt or modify MVS structures with a view to seeking admission to trading apply to all types of companies listed in Annex II to Directive (EU) 2017/1132 of the European Parliament and of the Council ⁴ to the extent that such companies can, under national law, issue shares and seek admission to trading of their shares on an MTF.