ESMA finalises technical standards on derivatives transparency and the OTC derivatives tape

The proposed pre- and post-trade transparency requirements for exchange traded derivatives (ETDs) and OTC derivatives are designed to provide a high level of transparency whilst ensuring that liquidity providers are protected from undue risk.  

 In the final proposals, ESMA has taken on board stakeholders’ feedback to streamline and improve the deferral regime initially proposed in the public consultation, in particular concerning equity ETDs and single-name credit default swaps.  

 The regulatory technical standard (RTS) also ensures that the new deferral regime is in place ahead of the go live of the OTC derivatives consolidated tape (CTP).  

 The package order RTS has been adapted to the changes introduced to the transparency framework following the MiFIR review. 

 Regarding the mandate on data quality requirements for the consolidated tapes, the report includes a proposed amendment to the RTS on input and output data. This amendment outlines the list of fields to be transmitted to and disseminated by the OTC derivatives CTP and provides a clarification on the scope of the bonds CTP with respect to Exchange Traded Commodities/Exchange Traded Notes instruments.  

The Simplification and Burden Reduction principle was applied by consolidating all derivative-related amendments into one review, setting a single application date across RTSs, removing transparency reporting to ESMA and using static thresholds which do not require annual updating and streamlining post-trade data. 

Next steps

The report has been submitted to the European Commission, that will now have three months to decide whether to endorse the proposed RTS. The new rules are expected to start applying on 1 March 2027.  

 Further information:

Cristina Bonillo

Senior Communications Officer
press@esma.europa.eu