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ESMA Consults on MIFIR Transparency Regime For Non-equity Instruments

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today launched a Consultation Paper (CP) reviewing the transparency regime for non-equity instruments and the trading obligation for derivatives under the Market in Financial Instruments Regulation (MiFIR). 

The CP contains ESMA’s proposals for possible amendments to the transparency regime based on in-depth data analyses of the effects of the current regime since January 2018.

ESMA’s objective for this review is to simplify the current complex trade reporting regime in order to create a uniform set of rules in the European Union (EU) while trying to improve the overall trade transparency available to market participants for non-equity instruments.

ESMA’s data analyses revealed the following main developments since 2018 were:

  1. The overall level of pre-trade transparency appears to be limited due to the high share of financial instruments benefitting from a waiver; and
  2. The available deferral options for post-trade transparency appears detrimental to attaining the objective of improving the functioning of the EU internal market.

This consultation paper (CP) also includes ESMA’s report on the impact of the newly established trading obligation for derivatives and the progress made in moving trading in standardised OTC derivatives to exchanges or electronic trading platforms.

In addition to the Level 1 review, ESMA decided to include in this CP the Level 2 review with regard to the transparency regime in CDR (EU) 2017/583 (RTS 2). RTS 2 is the implementing measure specifying the technical rules of how pre- and post-trade transparency apply to different asset classes across the Union.

ESMA is proposing to move to the next stage in terms of gradually increasing the transparency for bonds. In addition, ESMA is consulting on some targeted improvements specifically for commodity derivatives.

Next Steps

ESMA invites all stakeholders involved in EU securities markets to respond to this consultation by 19 April 2020. ESMA intends to submit its final review report of the transparency regime applicable to non-equity instruments to the European Commission in July 2020.

This CP is part of the broader review of MiFIR and complements the CP published on 4 February 2020 on the transparency regime for equity and equity-like instruments.


Related Documents

Consultation Paper on Review Report on Transparency For Non-equity Tod


Reply From MIFIR Non-equity Consultation



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