Einde inhoudsopgave
EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/5.VI.1.1
5.VI.1.1 General
mr. J.E.C. Gulyás, datum 01-02-2021
- Datum
01-02-2021
- Auteur
mr. J.E.C. Gulyás
- JCDI
JCDI:ADS266416:1
- Vakgebied(en)
Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht
Voetnoten
Voetnoten
ESMA, Note on MiFID/MiFIR Implementation: Delays in the Go-Live Data of Certain MiFID Provisions, 2 October 2015(ESMA/2015/1514), p. 3. For different data categories, see D. McGilvray, Data Quality Projects: Ten Steps to Quality Data and Trusted Information, Morgan Kaufmann Publishers, 2008 (available at: https://booksite.elsevier.com/9780123743695/10steps_DataCategories.pdf).
FCA (Financial Conduct Authority) (UK NCA), Supervisory Statement on the Operation of the MiFID Transparency Regime post-Brexit, 2018, p. 1.
Although the MiFID II equity pre-trade transparency regime for shares and certificates is overall the same, MiFID II defines, for example, ‘liquid’ different for shares than it does for certificates (Annex III, Table 1-2, MiFIR Delegated Regulation 2017/587). The MiFID II calculation provisions of liquid equity instruments can be found in art. 1-4 MiFIR Delegated Regulation 2017/567. For a more detailed examination of the MiFID II definition of liquid equity instruments, reference is made to section IV (paragraph 2.3) above.
Reference data, as the name implies, is the type of data other systems point or refer to.1 Reference data in the context of equity pre-trade transparency describes the characteristics of a financial instrument, such as the instrument identification number (ISIN), which enables to see the applicability of the MiFID II equity pre-trade transparency obligations. MiFID II requires RMs, MTFs (and OTFs), and SIs to report reference data to their NCA. The reporting requirements apply with regard to financial instruments admitted to trading on an RM or traded on an MTF (or OTF).2MiFID II requires RMs, MTFs and SIs to report, among other things, the following reference data:
instrument identification number (ISIN),
instrument full name,
instrument classification (CFI) (e.g. equity versus non-equity, share or ETF),
trading venue or SI where the instrument is traded (Market Identifier Code: MIC),
date of admission to trading or date of first trade, and
issuer or operator of the trading venue identifier (so-called Legal Entity Identifier (LEI) of issuer or trading venue operator).3
The MiFID II reference data, among other things, enables to identify whether an equity instrument is ‘traded on a trading venue’ (see point d above), as relevant for the MiFID II equity pre-trade transparency obligations.4 In addition, the reference data enables to distinguish between equity and non-equity instruments (asset classes), as well as between sub-asset classes (e.g. shares versus certificates) (see point c above). In effect, reference data enables to determine which MiFID II pre-trade transparency obligations apply, such as the MiFID II equity pre-trade transparency obligations for shares or certificates.5 Reference data is therewith relevant for both market participants (e.g. RMs and MTFs) and NCAs and ESMA in supervising and/or providing calculations for the MiFID II equity pre-trade transparency regime.6
Given the importance of reference data for the MiFID II equity pre-trade transparency regime (and other MiFID II provisions, such as transaction reporting), MiFID II covers several reference data provisions. In short, MiFID II requires RMs, MTFs and SIs to report the MiFID II reference data to their NCA (to ESMA in case of delegation) on a daily basis. The RMs, MTFs, and SIs need to ensure complete and accurate reference data.7 NCAs (or ESMA in case of delegation) need(s) to monitor the data.8 The NCA (non-delegating) must in turn submit the ‘complete and accurate’ reference data to ESMA.9MiFID II obliges ESMA to consolidate the reference data from the individual NCAs (see paragraph 3.1 below).