EC issued new regulatory technical standards that specify which derivatives should be subject to the trading obligation under the Markets in Financial Instrument Regulation (MiFIR). The rules are intended to make certain types of derivative trades safer and more transparent. The regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
The new rules determine those derivatives that may only be traded on an EU trading venue or a non-EU trading venue covered by equivalence decisions of EC. EU trading venues include regulated markets, multilateral trading facilities, and organized trading facilities. These rules, which take the form of regulatory technical standards, will now be sent for scrutiny to the European Parliament and the Council. Furthermore, EC is planning to soon adopt its equivalence decision recognizing some U.S. trading platforms, following last month's agreement with the U.S. CFTC on a common approach regarding certain derivatives trading platforms.
This follows the G20 commitment to ensure that more trading in derivatives takes place on transparent trading venues, instead of being privately negotiated over the counter. Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union, said: "With these rules, EU financial market players will now have certainty on what derivatives will have to be traded on venues where greater safety, stability and transparency are assured."
- Regulatory Technical Standards (PDF)
- Annex to Regulatory Standards (PDF)
- Implementing and Delegating Acts on MiFIR
Keywords: Europe, EU, Securities, MiFID II, MiFIR, Trading Obligations, Trading Venues, Equivalence, EC
Previous ArticleESAs Publish First Set of Q&A on the Key Information Document
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.