ESMA published its assessment and recommendations on the EC’s MiFIR review proposal
15 March 2022
The letter focuses on the establishment of the consolidated tape provider (CTP) but also includes elements such as equity and non-equity transparency, reporting and payment for order flow.
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its assessment of the main elements on the European Commission’s (EC) MiFIR review proposal.
ESMA provides its technical comments on a number of topics included in the proposal and recommends to co-legislators to:
- allow for more time for running the selection process of the CTP;
- split the selection procedure from the authorisation process;
- mandate ESMA with preparing regulatory technical standards on market
data to be included by the CTP instead of an EC delegated act;
- extend the timeline for triggering the assessment for ESMA to be the CTP fall-back solution;
- simplify the non-equity deferral regime as suggested in the ESMA review report on non-equity transparency;
- ensure a level-playing filed across the Union and add a stand-alone
suspension mechanism for the derivatives trading obligation; and
- replace the concept of “traded on a trading venue” to avoid gaps in reporting and transparency publications.
The EC adopted, in November 2021, its proposal for a review of MiFIR
on enhancing market data transparency, removing obstacles to the
emergence of a consolidated tape, optimising the trading obligations and
prohibiting receiving payment for forwarding client orders.
Next steps
The MiFIR review proposal is currently being negotiated by the European Parliament and the Council.
ESMA
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