European Securities and Markets Authority (ESMA) has published its final
technical standards (TS) on the Markets in Financial Instruments Directive
(MiFID II), the Market Abuse Regulation (MAR) and the Central Securities
Depositaries Regulation (CSDR).
final technical standards implementing MiFID II are intended to impose
regulatory oversight over the majority of non-equity products traded in Europe,
and help move a significant portion of over-the-counter trading in Europe onto
regulated trading venues.
TS include pre-trade and post-trade transparency for equity and non-equity
financial instruments. These include the trading obligation for
over-the-counter derivatives subject to mandatory clearing, micro-structural
issues, including algorithmic trading, market making, direct market access and
co-location, transaction data reporting and non-discriminatory access to
clearing, trading and benchmarks and requirements applying on and to trading
standards include commodity derivatives, including the ancillary exemption from
investment firm authorisation and commodity derivative position limits, market
data reporting, straight-through processing requirements for derivatives and
best execution and investor protection requirements.
a press statement, Steven Maijoor, ESMA Chairman, says: “The rules put out by ESMA on MiFID II, MAR and
CSDR will notably change the way Europe’s secondary markets function. And this
will no doubt impact market participants and regulators alike. The magnitude of
this change should not be underestimated. But the past has taught us that
change is needed in order to make markets more transparent, efficient, and
safer to invest in. This will entail a certain cost but we should not forget
the other side of this equation, which is the great benefits safer and sounder
markets will bring to everybody.”
II’s final technical standards will now being considered for approval by
the European Commission for up to three months. MiFID II is scheduled to be
fully effective on January 3, 2017.