September 15, 2017

ESMA issued a procedure under Markets in Financial Instruments Regulation (MiFIR), which lays out the steps for trading venues to temporarily opt out from access provisions for exchange-traded derivatives (ETDs). The ESMA procedure is aimed at national competent authorities and trading venues that can benefit from the exemption foreseen in Article 36(5) of MiFIR.

MiFIR establishes non-discriminatory and open access provisions for trading venues and central counterparties (CCPs). Trading venues are obliged to provide access, including data feeds on a non-discriminatory and transparent basis, to CCPs that wish to clear transactions executed on those trading venues. However, when trading in ETDs, if one trading venue falls below a certain threshold, the trading venue may notify ESMA and its national competent authority of its intention to temporarily opt out from the access provisions with respect to those instruments. As clarified in a question and answer (Q&A) document recently published by ESMA, “Trading venues should notify their intention to temporarily opt out of the access provisions to ESMA at the very latest by the end of September 2017 according to the requirements set out in in Articles 17 and 19 of Commission Delegated Regulation (EU) 2017/581.”


Related Links

Procedure (PDF)

Relevant Q&A (PDF)



Keywords: Europe, EU, Securities, MiFID/MiFIR, Trading Venues, ETD Access, CCPs, ESMA