Updates to ESMA Q&A
On 2 February 2024, ESMA updated its questions and answers on MiFIR data reporting. With this update, ESMA updated the list of national client identifiers for natural persons to be used in transaction reports pursuant to the priority specified in Annex II of the Commission Delegated Regulation (EU) 2017/590.
ESMA Public Statement - deprioritisation of supervisory actions on RTS 28 reports
On 13 February 2024, the ESMA issued a Public Statement to provide clarity to market participants regarding their reporting requirements under RTS28, pending the full application of the new rules under MiFID II. ESMA expects National Competent Authorities ("NCAs") not to prioritize supervisory actions towards investment firms concerning the periodic RTS28 reporting obligation until the forthcoming transposition into national legislation in all Member States of the MiFID II review. Under the revised MiFID II/ MiFIR framework, investment firms are no longer obligated to annually report detailed information on trading venues and execution quality through RTS28 reports. This statement aims to promote coordinated action by NCAs under MiFID II.
New Amending Directive and Regulation
On 8 March 2024, the following were published to improve access to market data and transparency:
- Directive 2024/790 of 28 February 2024 (“New Directive”) amending MiFID II
- Regulation 2024/791 of 28 February 2024 (“New Regulation”) amending Regulation (EU) No 600/2014 (MiFIR)
The New Regulation generally aims at enhancing data transparency, removing obstacles to the emergence of consolidated tapes, optimising the trading obligations and prohibiting receiving payment for order flow. The New Directive’s target is to improve the transparency requirements on markets in financial instruments and the resilience for regulated markets. It strengthens the obligation to execute orders on the most favourable terms for clients and introduces new transparency obligations for operators of trading venues.
ESMA Public Statement - transition for the application of the MiFID II/MiFIR review
On 27 March 2024, ESMA published a Public Statement aimed at providing practical guidance on some key points to support the transition and consistent application of MiFID II and MiFIR in light of the changes introduced to them by the New Directive and New Regulation; the guidance focuses on various aspects such as equity transparency, systematic internalised regime, designated publishing entities, and reporting.
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