ESMA Consultation Paper – MiFIR review report on the obligations to report transactions and reference data

ESMA have released a Consultation Paper – “MiFIR review report on the obligations to report transactions and reference data”

Article 26(10) of MiFIR requires the European Commission (EC) to present a report to the European Parliament and the Council to assess the functioning of the transaction reporting regime under this Article. This consultation paper (CP) originates from the EC’s mandate to ESMA.

The proposals are substantive and the impact on firms not insignificant – we outline below the key headings impacting firms with an obligation to transaction report.

  • Extension of the reporting obligation to UCITS management companies and AIFMs providing one or more MiFID services to third parties.
  • Clarification of the regulation applicable to branch reporting obligations.
  • Broadening the requirements for NCAs to share transaction reports.
  • Extension of the scope of transparency, transaction and reference data reporting to include derivative instruments traded through an SI.
  • Extension of the scope to include OTC derivatives referencing ‘Benchmarks’
  • Extension of TVTIC to cover SI as well as trading venues
  • Linking client side to market side transaction reports
  • Remove or redefine the short selling indicator
  • Extend waivers to include transaction executed on Sis
  • Amendments to the regulation pertaining to transmitting orders

The proposals will have an impact on the ARM and will require changes to be made as and when the regulation is amended. 

The closing date for responses is 20 November 2020.

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