MiFID - Secondary Markets

The European Securities and Markets Authority (ESMA) has produced, for the first time, data on the size of the interest rate, credit, equity, commodity and foreign exchange derivatives markets in the European Union’s (EU), based on the weekly data it receives from trade repositories (TRs).

According to ESMA’s initial analysis, which was performed on the data available on 24 February 2017, the size of the EU’s derivatives markets across all asset classes was estimated as having a notional value of about €453 trillion and around 33 million transactions.

The details are included in an article - EU derivatives markets ─ a first-time overview – included in the latest version of ESMA’s Trends, Risks and Vulnerabilities. The work is based on the combined data received from all six trade repositories in the EU, who are supervised by ESMA, under the reporting requirements of the European Markets Infrastructure Regulation (EMIR). The data provided by TRs is an extensive source of information about derivatives, including bank and non-bank entities.

This article includes information on the size of the different derivative markets, both in terms of the number of transactions and gross notional amount outstanding. Moreover, it also includes measures of market concentration.

Substantial work in this area continues in ESMA, aimed to enhance data quality and improve statistical analysis. These are key priorities for ESMA in the coming years.

 

The European Securities and Markets Authority (ESMA) has today launched the second phase of its Financial Instrument Reference Database (FIRDS). The launch involves providing access to the database containing the currently available reference data that will eventually enable market participants to identify instruments subject to MAR and MiFID II/MiFIR reference data reporting requirements. This will allow market participants to prepare their reporting systems ahead of the go-live date on 3 January 2018.

The advance publication of this data will facilitate markets participants’ preparation of their systems to fulfil future reporting obligations to national competent authorities (NCAs) under MiFIDII/MiFIR. ESMA has also published instructions for market participants on how to access the data and download the relevant machine-readable files.

The requirements of Article 27 of MiFIR and related technical standards oblige trading venues and systematic internalisers to submit reference data, from 3 January, for the relevant financial instruments to national competent authorities (NCAs) who will subsequently transmit it to ESMA for publication. 

The data released today are subject to quality limitations, in particular regarding their completeness. ESMA and the NCAs will continue to monitor and improve the quality and completeness of the published information.

Background

ESMA, in order to allow for a smooth transition to the new MIFID reporting regime, began the first phase of FIRDS in July by collecting financial instrument reference data from reporting entities and today’s release to the market contains the currently available data in advance of MIFIR’s 3 January 2018 go-live date. The availability of this information at this early stage will play an important role in assuring the quality of data that market participants report to NCAs from 3 January 2018 onwards.

In preparation for 3 January 2018, ESMA encourages market participants to begin using the published data following the instructions provided on how to access the data, download the machine-readable files as well as the reporting instructions.

Market participants with database, files or technical instructions related queries should contact support@esma.europa.eu.

The European Securities and Markets Authority (ESMA) has today issued Question and Answers (Q&As) on post-trading issues regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

MiFID II will enter into application on 3 January 2018 and will strengthen the protection of investors by both introducing new requirements and strengthening existing ones.

The purpose of this Q&A is to promote common supervisory approaches and practices in the application of MiFID II/ MiFIR for post-trading topics, providing responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of MiFID II/MiFIR requirements.

 

The European Securities and Markets Authority (ESMA) has published a Briefing on the Legal Entity Identifier (LEI) as part of its efforts to raise industry awareness and facilitate compliance with the LEI requirements under MiFID II ahead of its 3 January 2018 launch.

ESMA expects market participants to take all necessary steps to ensure full compliance with the LEI requirements under MiFID II. Based on its previous experience with EMIR reporting, ESMA urges reporting entities not to delay in addressing this important matter, as advance preparation will help in avoiding backlogs and ensuring that all market participants are ready for the new regime.

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