On Thursday, the European Securities and Markets Authority (ESMA)
launched a public consultation “on certain technical issues” to inform its
upcoming manual on post-trade transparency.
The European Union financial markets regulator explained that the manual
will be a Level 3 guidance which will provide clarification on “issues related
to post-trade transparency to improve the consistency and usability of the
information published.” In addition, the manual will provide more insight into reporting to ESMA via the Financial
Instruments Reference Data System for the performance of post-trade transparency
calculations.
ESMA’s call for public feedback on the proposed manual comes two days after the European
Commission (EC) adopted its proposed amendments to the regulatory standards
(RTS) on equity transparency (RTS 1) and non-equity transparency (RTS 2). In late December last year, EMSA issued a positive opinion to the EC’s proposed amendments to the standards.
“The EC’s proposed amendments suggest introducing a new flag in RTS 2, [amending] the definitions of certain fields in the post-trade transparency
reporting, mainly in RTS 2, as well as transitional provisions including
postponing the application date of certain provisions to 1 January 2024 in
both RTS 1 and 2,” ESMA explained in a document outlining its opinion on the amendments.
According to ESMA, the planned manual will include in one single
document legal references to its three previous guidance statements on the subject.
The first or Level 1 is on the Markets in Financial Instruments
Regulation (MiFIR) and Markets in Financial Instruments Directive (MiFID) II
MiFID II
MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s financial needs and to ensure a consistent level of consumer protection across the EU. MiFID II rules come into force for the European financial sector on January 3, 2018, which are set to have far-reaching consequences for the industry. MiFID II ExplainedMiFID II relates to the framework of trading venues/structures in which financial instruments are traded. MiFID is concerned with regulating the operation of the full range of trading venues and the processes, systems, and governance measures adopted by market participants. The newest version of MiFID updates requires trading transactions and information to be more transparent than ever before. MiFID II requires that all prices are posted before and after trades are completed, no matter the type of trading platform on which transactions occur. Giving investors access to a whole new scope of data and information and enables them to make more educated decisions regarding their clients’ portfolios. One of the primary purposes of this new requirement is to allow retail firms and their customers to find the best deals available by comparing prices and other factors from the newly available data. MiFID II looks to substantially increase the protection of retail investors and severely limit the types of financial instruments with which retail investors can complete transactions without being legally obligated to consult a trader or similar professional.
MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s financial needs and to ensure a consistent level of consumer protection across the EU. MiFID II rules come into force for the European financial sector on January 3, 2018, which are set to have far-reaching consequences for the industry. MiFID II ExplainedMiFID II relates to the framework of trading venues/structures in which financial instruments are traded. MiFID is concerned with regulating the operation of the full range of trading venues and the processes, systems, and governance measures adopted by market participants. The newest version of MiFID updates requires trading transactions and information to be more transparent than ever before. MiFID II requires that all prices are posted before and after trades are completed, no matter the type of trading platform on which transactions occur. Giving investors access to a whole new scope of data and information and enables them to make more educated decisions regarding their clients’ portfolios. One of the primary purposes of this new requirement is to allow retail firms and their customers to find the best deals available by comparing prices and other factors from the newly available data. MiFID II looks to substantially increase the protection of retail investors and severely limit the types of financial instruments with which retail investors can complete transactions without being legally obligated to consult a trader or similar professional.
Read this Term. The second or Level 2 is on the RTS1 and RTS 2 while the third is based on its
various opinions and guidelines (including its guidance included in previously
published Questions and Answers reports).
“This new Level 3 tool will be a Manual which is intended purely as a
practical tool with the clear purpose of supporting the practical
implementation of the applicable post-transparency legal requirements to
stakeholders. The manual does not provide EU law interpretation or contain
supervisory elements,” ESMA clarified in the consultation paper.
The regulator said it will stop receiving comments on the consultation paper on March 31, 2023.
In addition, it intends to publish the manual after the end of the consultation period
and after the European Parliament and Council’s three-month scrutiny period for the
reviewed RTS 1 and 2.
On Thursday, the European Securities and Markets Authority (ESMA)
launched a public consultation “on certain technical issues” to inform its
upcoming manual on post-trade transparency.
The European Union financial markets regulator explained that the manual
will be a Level 3 guidance which will provide clarification on “issues related
to post-trade transparency to improve the consistency and usability of the
information published.” In addition, the manual will provide more insight into reporting to ESMA via the Financial
Instruments Reference Data System for the performance of post-trade transparency
calculations.
ESMA’s call for public feedback on the proposed manual comes two days after the European
Commission (EC) adopted its proposed amendments to the regulatory standards
(RTS) on equity transparency (RTS 1) and non-equity transparency (RTS 2). In late December last year, EMSA issued a positive opinion to the EC’s proposed amendments to the standards.
“The EC’s proposed amendments suggest introducing a new flag in RTS 2, [amending] the definitions of certain fields in the post-trade transparency
reporting, mainly in RTS 2, as well as transitional provisions including
postponing the application date of certain provisions to 1 January 2024 in
both RTS 1 and 2,” ESMA explained in a document outlining its opinion on the amendments.
According to ESMA, the planned manual will include in one single
document legal references to its three previous guidance statements on the subject.
The first or Level 1 is on the Markets in Financial Instruments
Regulation (MiFIR) and Markets in Financial Instruments Directive (MiFID) II
MiFID II
MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s financial needs and to ensure a consistent level of consumer protection across the EU. MiFID II rules come into force for the European financial sector on January 3, 2018, which are set to have far-reaching consequences for the industry. MiFID II ExplainedMiFID II relates to the framework of trading venues/structures in which financial instruments are traded. MiFID is concerned with regulating the operation of the full range of trading venues and the processes, systems, and governance measures adopted by market participants. The newest version of MiFID updates requires trading transactions and information to be more transparent than ever before. MiFID II requires that all prices are posted before and after trades are completed, no matter the type of trading platform on which transactions occur. Giving investors access to a whole new scope of data and information and enables them to make more educated decisions regarding their clients’ portfolios. One of the primary purposes of this new requirement is to allow retail firms and their customers to find the best deals available by comparing prices and other factors from the newly available data. MiFID II looks to substantially increase the protection of retail investors and severely limit the types of financial instruments with which retail investors can complete transactions without being legally obligated to consult a trader or similar professional.
MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s financial needs and to ensure a consistent level of consumer protection across the EU. MiFID II rules come into force for the European financial sector on January 3, 2018, which are set to have far-reaching consequences for the industry. MiFID II ExplainedMiFID II relates to the framework of trading venues/structures in which financial instruments are traded. MiFID is concerned with regulating the operation of the full range of trading venues and the processes, systems, and governance measures adopted by market participants. The newest version of MiFID updates requires trading transactions and information to be more transparent than ever before. MiFID II requires that all prices are posted before and after trades are completed, no matter the type of trading platform on which transactions occur. Giving investors access to a whole new scope of data and information and enables them to make more educated decisions regarding their clients’ portfolios. One of the primary purposes of this new requirement is to allow retail firms and their customers to find the best deals available by comparing prices and other factors from the newly available data. MiFID II looks to substantially increase the protection of retail investors and severely limit the types of financial instruments with which retail investors can complete transactions without being legally obligated to consult a trader or similar professional.
Read this Term. The second or Level 2 is on the RTS1 and RTS 2 while the third is based on its
various opinions and guidelines (including its guidance included in previously
published Questions and Answers reports).
“This new Level 3 tool will be a Manual which is intended purely as a
practical tool with the clear purpose of supporting the practical
implementation of the applicable post-transparency legal requirements to
stakeholders. The manual does not provide EU law interpretation or contain
supervisory elements,” ESMA clarified in the consultation paper.
The regulator said it will stop receiving comments on the consultation paper on March 31, 2023.
In addition, it intends to publish the manual after the end of the consultation period
and after the European Parliament and Council’s three-month scrutiny period for the
reviewed RTS 1 and 2.
Source link
