ESMA Lists Derivatives To Be Traded On-Venue
The European Securities and Markets Authority (ESMA) has published a public register of those derivative contracts that are subject to the trading obligation under the Markets in Financial Instruments Regulation (MiFIR).
MiFIR applies since 3 January 2018, and the trading obligation is further specified in Commission Delegated Regulation (EU) 2017/2417.
The register provides clarity to market participants on the application of the trading obligation under MiFIR and in particular on:
- the classes of derivatives subject to the trading obligation;
- the trading venues on which those derivatives can be traded; and
- the dates on which the obligation takes effect per category of counterparties
- The public register will be updated in case of changes, such as when new trading venues offer trading in the derivatives subject to the trading obligation.
Should ESMA envisage to include more derivatives in the scope of MiFIR’s trading obligation going forward, it will consult market participants prior to doing so.
A systematic internaliser can report trades on behalf of clients.
EU trading venues can temporarily opt-out from ETD access provisions.
There are tax implications for banks that become Qualified Derivatives Dealers.
Early observations include 'teething problems' with data.
Authorities want to be able to identify individual OTC derivatives from aggregated trade reports.