Press Releases

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today updated its Questions and Answers (Q&As) on the Securitisation Regulation (Regulation 2017/2402).

The majority of Q&As in this document provide clarification on different aspects of the templates contained in the draft technical standards on disclosure which were recently published by the European Commission. In particular, the Q&As clarifies how several specific fields in the templates should be completed and also contains clarifications relating to STS notifications and securitisation repositories.

This fourth version of the Securitisation Q&As includes a summary table giving an easy overview of the list of Q&As. The order of some Q&As has been slightly adjusted compared to the previous version with a view to grouping Q&As treating similar topics. To ensure traceability, the overview table lists the number of each Q&A in the previous version where it is different from the new version.

The purpose of this document is to promote common, uniform and consistent supervisory approaches and practices in the day-to-day application of Securitisation Regulation and help regulated entities comply with their obligations.

ESMA will continue to develop this Q&A on the Securitisation Regulation in the coming months and will review and update them where required.

The European Securities and Markets Authority (ESMA) has today withdrawn the credit rating agency (CRA) registration of DG International Ratings SRL (previously Dagong Europe Credit Rating Srl) (DG International).

The withdrawal decision follows the official notification sent to ESMA by DG International on 25 October 2019 of its intention to renounce its registration as a CRA under the conditions set out in Article 20(1)(a) of the CRA Regulation (CRAR).


Point (a) of Article 20(1) of the CRAR provides that without prejudice to Article 24, ESMA shall withdraw the registration of a credit rating agency where the credit rating agency “expressly renounces the registration or has provided no credit ratings for the preceding six months”.

The European Securities and Markets Authority (ESMA) has today launched a Consultation Paper on position limits and position management in commodity derivatives. 

ESMA launches this consultation paper in the context of the review it is obliged to perform under MiFID II, together with the European Commission (EC), on the impact of position limits on liquidity, market abuse and orderly pricing and settlement conditions in commodity derivative markets and is seeking stakeholders’ views on some proposed amendments to the legal framework.

Building on the responses received to the call for evidence published in May 2019, the consultation paper analyses the impact of position limits on market abuse and orderly pricing and settlement as well as the impact the position limit regime may have had on less liquid commodity derivative contracts. The consultation paper is also seeking stakeholders’ views on some proposed changes to the legal framework aiming in particular at limiting the scope of commodity derivatives subject to position limits to key contracts, introducing a limited position limit exemption for financial counterparties and enhancing convergence in the implementation of position management regimes by trading venues.

In a second part, the consultation paper is seeking stakeholders’ views on an amendment to the quantitative thresholds that trigger publication of weekly position reports by trading venues so that more transparency is available for commodity derivative contracts traded in the EU27.

Next steps and timeline

Stakeholders are invited to provide feedback by 8 January 2020. ESMA will consider the feedback received in drafting its final report to the EC on the impact of position limits and position management controls on commodity derivatives markets and in finalising the technical advice on weekly position reports. ESMA intends to complete those two workstreams by the end of March 2020.

ESMA Chair Steven Maijoor participated today in the annual hearing of European Parliament's Economic and Monetary Affairs Committee (ECON), together with the Chairmen of the European Banking (EBA) and European Occupational Pensions Authority (EIOPA). 

Read his opening remarks and refer to additiona information here.

The European Securities and Markets Authority (ESMA) wants to inform stakeholders that, following the European Council’s decision today extending the period under Article 50(3) relating to the United Kingdom’s (UK) withdrawal from the European Union (EU), its previous statements relating to its preparations for a no-deal Brexit will no longer apply as of 31 October. 

The reference date for Brexit in all of ESMA’s previously published measures and actions, including public statements, issued regarding the possibility of a no-deal Brexit scenario, should now be read as 31 January 2020.

However, given the nature of the current extension ESMA will issue further announcements and updated measures as matters develop.

The European Securities and Markets Authority (ESMA) will publish the systematic internaliser (SI) and bond market liquidity data on 8 November, this follows the latest developments around the departure of the United Kingdom (UK) from the European Union (EU).

ESMA will publish the SI regime data for equity, equity-like instruments and bonds and the quarterly liquidity assessment for bonds on 8 November 2019 and the requirements based on this publication will apply from 16 November 2019.

ESMA was due to publish the SI regime data for equity, equity-like instruments and bonds and the quarterly liquidity assessment for bonds by 1 November 2019. However, the developments concerning the UK’s departure from the EU have an impact on this publication date, which was already indicated in the 7 October public statement on ESMA’s Data Operational Plan under a potential no-deal Brexit scenario occurring on 31 October 2019.


MiFID II became applicable on 3 January 2018 introducing, amongst others, pre-trade transparency obligations for SIs and pre- and post-trade transparency requirements for equity and non-equity instruments, including for bonds.

According to Article 4(1)(20) of Directive 2014/65/EU (MiFID II) investment firms dealing on own account when executing client orders over the counter (OTC) on an organised, frequent systematic and substantial basis are subject to the mandatory SI regime.

Commission Delegated Regulation (EU) No 2017/565 specifies thresholds determining what constitutes frequent, systematic and substantial OTC trading. In particular, investment firms are required to assess whether they are SIs in a specific instrument (for equity and equity-like instruments, bonds, ETCs and ETNs and SFPs) or for a (sub-) class of instruments (for derivatives, securitised derivatives and emission allowances) on a quarterly basis based on data from the previous six months. For each specific instrument/sub-class, an investment firm is required to compare the trading it undertakes on its own account compared to the total volume and number of transactions executed in the European Union (EU). If the investment firm exceeds the relative thresholds it will be deemed an SI and will have to fulfil the SI-specific obligations. ESMA, upon request of market participants and on a voluntary basis, decided to compute the total volume and number of transactions executed in the EU in order to help market participants in the performance of the test since that data is essential for the operation of the SI regime and is not otherwise easily available.

Post-trade, MiFID II requires real-time publication of the price and quantity of trades in liquid bonds. It is possible to defer the publication of post-trade reports if the instrument does not have a liquid market, or if the transaction size is above large-in-scale thresholds (LIS), or above a size specific to the instrument (SSTI). In order to assist market participants to know whether a bond should be considered as liquid or not, ESMA publishes these quarterly liquidity assessments for bonds.

The European Securities and Markets Authority (ESMA) has today published its final report on the Guidelines on standardised procedures and messaging protocols. The Guidelines aim to clarify the scope of the requirement contained in Article 6(2) of the Central Securities Depositories Regulation (CSDR) and provide guidance on the standardised procedures and messaging standards used for compliance.

Investment firms are expected to take measures to limit the number of settlement fails and to – at least – set up arrangements with their professional clients to ensure prompt communication of the necessary settlement information.

ESMA, following a public consultation, has drafted final guidelines which set out how investment firms should ensure the requirements set out in Article 6(2) and Article 2 of the RTS on Settlement Discipline are complied with.

In particular, investment firms should agree with their professional clients on the communication procedures and messaging protocols to be used between them, in order for the necessary settlement information to be timely provided to the investment firm.

Subject to a written contractual agreement between them, the guidelines also clarify the degree of flexibility that is left to the parties to organise their communication.


The requirement laid down in Article 6(2) of CSDR and further specified in Article 2 of RTS on Settlement Discipline is focused on the preparation of the settlement process in order to limit the number of settlement fails: investment firms should ensure that they have all the necessary settlement details as much as possible on the business day on which the transaction takes place. To achieve this, investment firms that do not already have the necessary settlement information should communicate with their clients in order to obtain the respective information, which should include standardised data useful for the settlement process.

Next steps

The guidelines will be translated into the official languages of the European Union and published on the ESMA website. They should start applying on the date of entry into force of the RTS on Settlement Discipline.

On 29 March 2017, the United Kingdom of Great Britain and Northern Ireland (UK) invoked Article 50 of the Treaty on European Union (TEU) which triggered the process for its withdrawal from the European Union (EU), or Brexit. The invocation procedure provides that after a negotiation period of up to two years, the TEU cease to apply to the Member State which invoked Article 50.  

ESMA initiated a systematic analysis of the potential impact of a no-deal Brexit for EU securities markets and for ESMA as an organisation, when it was preparing for a potential no deal scenario on 29 March 2019 and 12 April 2019, and communicated to the market on its contingency planning.

On 10 April 2019, the European Council (Council) agreed a further extension to Brexit until 31 October 2019 to allow for the ratification of the Withdrawal Agreement by both Parties. If the Withdrawal Agreement fails to be ratified and no further extension is agreed by the Council, the UK will leave the EU on 31 October 23:00 (UK time).

The reference date for Brexit in all of ESMA’s previously published measures and actions, including public statements, issued regarding the possibility of a no-deal Brexit scenario, should now be read as 31 October 2019. The full list of statements and measures issued previously is available on ESMA’s website and also included in the annex to this statement.

Some of the measures announced need updating in case of a no-deal Brexit on 31 October 2019, so ESMA is issuing today updated measures in the following areas:

-       Public Statement on the Use of UK data in ESMA databases and performance of MiFID II calculations updating the communication issued on 5 February 2019.

-       Public Statement on the Impact of no-deal Brexit on MiFID II/MiFIR and the Benchmark Regulation (BMR) – C(6) carve-out, ESMA opinions on third-country trading venues for the purpose of post-trade transparency and position limits, post-trade transparency for OTC transactions, BMR ESMA register of administrators and 3rd country benchmarks calculations updating the communication issued on 7 March 2019.

-       Public Statement on Operational plans related to ESMA databases and IT systems updating the communication issued on 19 March 2019.

Next steps

There is still a high level of uncertainty as to the final timing and conditions of Brexit, and should these change, ESMA will adjust the approach for its IT applications and databases and will inform the public of the adjusted approach as soon as possible.