EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/13.IV.4.1:13.IV.4.1 Content and format

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/13.IV.4.1

13.IV.4.1 Content and format

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS266787:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

MiFID II does not require RMs and MTFs to publish MiFID II equity pre-trade data for potential transactions taking place in the RM/MTF system in accordance with prescribed MiFID II standards and specifications (content and format).1 This contrasts with the situation where RMs and MTFs, in publishing SI quotes, need to publish the SI quotes in accordance with certain standards and specifications set out in MiFID II equity post-trade data reports (see paragraphs 2.2 and 3.1 above).2 The lack of standards and specifications for equity pre-trade data publication by RMs and MTFs also contrasts with the MiFID II equity post-trade transparency requirements for RMs and MTFs.3 That being said, under MiFID I, CESR recommended (not: mandated) to use, as far as possible, the so-called ISO format for publishing pre-trade (and post-trade) information (including for RM and MTF publication). CESR added that where the ISO-standards also covered content (e.g. currency codes), it was recommended to also use such content in the pre-trade reports.4 In other words, CESR recommended RMs and MTFs (and other entities) to use the ISO-format, and content where relevant, for pre-trade data reports. Given the limited changes in the area of RM and MTF pre-trade reports content and formats from MiFID I to MiFID II, the CESR recommendation still seems to be relevant for RMs and MTFs under MiFID II. This means that RMs and MTFs are recommended (not: required) to use the ISO-format, and content where relevant, as far as possible for equity pre-trade reports under MiFID II. The freedom of RMs and MTFs in MiFID II equity pre-trade data reports reflects (a) the focus of MiFID II on equity post-trade data standardization (not: equity pre-trade data standardization) and (b) preventing big investments (compliance costs) for RMs and MTFs in having to comply with prescribed MiFID II pre-trade data content and formats.5

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Art. 3(1) and Table 1 of Annex I MiFIR Delegated Regulation 2017/587. For the sake of clarity, the term ‘content’ here refers to specific content for equity pre-trade data reports (e.g. currency or ISINs). MiFID II does require RMs and MTFs to publish certain data – i.e. the range of bid and offer prices and depth of trading interest at those prices –, but MiFID II does not specify how the data should be structured in terms of content (e.g. ISIN) and format.

Art. 13(6) MiFIR Delegated Regulation 2017/567.

As shown above (section III), MiFID II requires RMs and MTFs to publish equity post-trade reports by including certain content, formats, and flags. See art. 3(1) and Table 1 Annex I (pre-trade) and art. 12(1) and Tables 2-4 Annex I MiFIR Delegated Regulation 2017/587.

CESR, Publication and Consolidation of MiFID Market Transparency Data, February 2007 (CESR/07-043), p. 12.

See, for example, Bolsas y Mercados Españoles (BME), Comments on the public consultation CESR/06-551 (October 2006), p. 8 and CESR, Consultation Paper: Technical Advice to the European Commission in the Context of the MiFID Review – Equity Markets, April 2010(CESR/10-394), p. 38.