ESMA Consultation on Trading Obligation for Derivatives Under MiFIR
ESMA proposed technical standards specifying the trading obligations for derivatives under the Markets in Financial Instruments Regulation (MiFIR). Trading obligation under MiFIR will move over-the-counter (OTC) trading in liquid derivatives onto organized venues, thus increasing market transparency and integrity. MiFIR, which implements parts of the second Markets in Financial Instruments Directive (MiFID II) framework, outlines the process for determining derivatives that should be traded on-venue.
This consultation includes liquidity analysis for interest rate derivatives and Index Credit Default Swap (CDS), based on a dataset covering the second half of 2016, including the proposal on which derivatives should be made subject to the trading obligation. The consultation also contains the proposal on how to phase-in the trading obligation for derivatives and the approach for the instrument register to be maintained by ESMA for the trading obligation, along with a high-level cost-benefit-analysis. ESMA will use the feedback received to finalize these standards and send the finalized standards to the EC for endorsement.
Related Link: Consultation and Response Template
Previous Article
DNB Issues Insurance Newsletter for December 2017Related Articles
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.
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.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards