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These concerns are in addition to the uncertainty around the acceptable trading protocols for package orders containing a component subject to the trading obligation, and the territorial scope of MIFIR obligations, which ESMA are understood to be currently considering.
Within OTC derivatives MiFIR introduces particular challenges. Many of these relate to the data that is required, the new industry concepts that are introduced, and the complex flow of data which underpins the transparency framework. MiFIR also introduces complex inter‐dependencies that do not currently exist, both for firms to satisfy their regulatory obligations but also to be able to continue trading from a technical perspective. An additional layer of complexity in the implementation stage is introduced by the split of responsibilities between ESMA and NCAs, and also ANNA‐DSB being introduced as new central and single commercial utility that derivative market participants are dependent on to satisfy their regulatory obligations.
Whilst NCAs, ESMA and ANNA‐DSB are each working to ensure that they meet their own obligations under MiFIR and publish clarifications where needed, the transparency framework is – from an investment firm’s perspective – a unified and highly inter‐connected project. Accordingly, to ensure coherent implementation of the transparency framework under MiFIR, it is imperative that all decisions and clarifications are coordinated.