ESMA Decides to Delay Publication of Double Volume Cap Data
ESMA decided to delay publication of data on the double volume cap (DVC) mechanism for January 2018. This is because the current quality and completeness of the data does not allow for a sufficiently meaningful and comprehensive publication of double volume cap calculations, as required under MiFID II/MiFIR. Therefore, ESMA has decided to avoid creating an unlevel playing field.
ESMA is aware of the legal obligation to apply the DVC from January 2018. However, as the publication of the calculations triggers other legal obligations in terms of transparency waivers’ suspensions related to dark trading, initiating the new regime based on the insufficient data ESMA has received is not appropriate at this stage. ESMA expects that the actions initiated to bridge this information gap, involving working with national competent authorities and trading venues to address data quality and submission issues, will allow for publication in March. ESMA expected to receive data for around 30,000 instruments in the context of the DVC mechanism, though it received complete data for approximately 650 instruments or about 2% of the expected total. The set of 650 instruments for which complete data is available only encompasses relatively illiquid instruments, which have a limited amount of dark trading. This would have rendered a publication at this point in time largely inconsequential. Data completeness is required to undertake the DVC calculations.
ESMA had finalized its IT system for the DVC and opened it for the submission of data by trading venues and national competent authorities to ESMA on the October 16, 2017—more than two months in advance of the MiFID II/MiFIR application date of January 03, 2018. ESMA, to ensure a timely publication of DVC data, is already engaging with national competent authorities and trading venues to close the gaps in reporting as soon as possible. ESMA has analyzed the data and is aware of which venues have, so far, not succeeded in submitting an adequately complete set of data and will address them first to improve the completeness of the available dataset. ESMA believes that the initial technical and reporting problems leading to this delay can be overcome within the next few weeks. In March, ESMA intends to publish the data covering the previous periods to ensure the full application of DVC as of January 2018.
Related Link: Press Release
Keywords: Europe, EU, Securities, MiFID, MiFIR, Trading Venues, DVC Data, ESMA
Previous Article
US Agencies to Amend CRA Regulations to Conform to HMDA RegulationRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.