The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

ESMA Updates Information on MiFID II & MiFIR Transparency

The European Securities and Markets Authority (ESMA) in April updated its Questions and Answers regarding market structures and transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

The new Q&As provide clarification on topics including the determination of the turnover to be used for the average value of transactions (AVT) calculation; money market instruments (MMIs); the impact for systematic internalisers of an instrument changing liquidity status in between the systematic internaliser determination dates; the reporting of prime brokerage transactions; the quoting obligation for systematic internalisers in non-equity financial instruments; branches of third country firms operating as SI in the EU; and third-country trading venues’ access to an EU CCP.

ESMA also reviewed its published Q&As on market structures topics and deleted/amended four topics addressing issues pertaining to January 3, 2018, and the following 12 months. These included the identification and authorisation of HFT and algorithmic trading; the timing of notification for transitional arrangements under Article 35(5) of MiFIR; the timing and procedure of notification for temporary opt out under Article 36(5) of MiFIR; and the timing of application for transitional arrangements under Article 54(2) of MiFIR.

In addition, the Q&A clarifying how tick sizes should be determined for non-EU instruments was also deleted.

ESMA will continue to develop these Q&As in the coming months, and will review and update where required.

Related content

WEBINAR

Recorded Webinar: Developing operational resilience

Financial institutions’ operational resilience – essentially the ability to prevent, adapt and respond to, and recover and learn from operational disruptions – has come under extreme pressure during the coronavirus pandemic, with last year’s March lockdown creating unprecedented circumstances for financial firms. Employees working from home raised the stakes, as they still do, adding to...

BLOG

One Year On: Banks Resume Prioritization of FRTB, but Same Challenges Persist

By: Essan Soobratty, Regulatory Product Manager, and Eugene Stern, Head of Market Risk Product, Bloomberg. One year on from the start of the global pandemic which sent global markets into turmoil and prompted regulators to introduce a range of emergency measures to support the financial system and the broader economy, banks are continuing their return...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

The Global LEI System – Slow but Sure

After what looked like a slow start to the summer, the initiative to establish a global standard for legal entity identifiers (LEIs) took a series of significant leaps forward during August, that appears to have put the project firmly back on track. If the marketplace felt a little reticent in June and July, it could...