October 03, 2017

ESMA updated its questions and answers (Q&As) on the implementation of the second Markets in Financial Instruments Directive (MiFID II). The Q&As include new answers to questions regarding market structure and transparency issues.

The added answers on market structure issues are related to DEA provider’s controls and suitability checks, default regime for tick sizes, responsible competent authority in case of dual listing, organized trading facility (OTF) mandatory trading in financial instruments, provisions applicable to OTFs trading REMIT wholesale energy products, and OTF best execution obligations vis-à-vis third-party brokers. The added answers on transparency issues cover topics such as application of post-trade transparency requirements by trading venues; equity transparency; first calculations to be published on January 03, 2018; level of asset class at which the calculation should be performed for derivatives, bonds, and structured finance products; and transactions that should be included in the calculations.

The purpose of the Q&As is to promote common supervisory approaches and practices in the application of MiFID II and its implementing measures. ESMA will periodically review these Q&A to update them as required and to identify if, in a certain area, there is a need to convert some of the material into ESMA guidelines and recommendations. The Q&As cover only activities of EU investment firms in the EU, unless specifically mentioned otherwise. Third-country-related issues, and in particular the treatment of non-EU branches of EU investment firms, will be addressed in a dedicated third-country section.

 

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Keywords: Europe, EU, Securities, MiFID II, Q&A, Investment Firms, Market Structure, Transparency, ESMA