The European Securities and Markets Authority (ESMA) has issued an opinion regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

The opinion clarifies the concept of “traded on a trading venue” (TOTV), which is relevant for a number of provisions under MIFID II and MiFIR. The concept of TOTV is particularly relevant for: (i) pre-trade and post-trade transparency requirements; and (ii) transaction reporting obligations. The ESMA opinion specifies that only OTC-derivatives sharing the same reference data details as derivatives for which trading venues submitted reference data should be subject to the MiFIR transparency and transaction reporting requirements.

ESMA’s opinion is intended to help building a common supervisory culture and consistent supervisory practices among national supervisors, as well as ensuring uniform procedures and consistent approaches throughout the European Union.

If members have any questions, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.