EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/9.IV.1.2:9.IV.1.2 Background

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/9.IV.1.2

9.IV.1.2 Background

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The MiFID II reference data provisions are best understood against the background of other MiFID II (and Market Abuse Regulation (MAR)) requirements. MiFID II requires RMs, MTFs (and OTFs) and SIs to submit identifying reference data for the relevant financial instruments to their NCAs (or ESMA in case of delegation).1 The NCAs are in turn required to transmit the reference data to ESMA for subsequent publication on the ESMA website. ESMA indicates that the use of reference data is ‘in particular required to support the scope of transaction reporting under MiFIR, as well as market abuse surveillance activities under MAR’.2 In other words, the MiFID II reference data provisions are in particular relevant for transaction reporting (certain post-trade data to NCAs) and market abuse provisions.

Whatever the case may be, reference data is also important for the MiFID II equity post-trade transparency regime. As shown above, reference data enables to identify (a) whether or not equity instruments are traded on an RM/MTF and (b) the asset class (equity versus non-equity) and sub-asset class (e.g. shares or ETFs), all determining the applicable MiFID II equity post-trade transparency rules.3 Reference data already existed under MiFID I (and was kept by ESMA) for shares (and bonds) admitted to trading on an RM. New under MiFID II is the amount of reference data. Given the extension of the MiFID II scope, MiFID II reference data provisions have been introduced for a broader range of financial instruments, including equity instruments traded on RMs and MTFs.4

New under MiFID II is also the extent to which reference data collection tasks have been delegated from NCAs to ESMA. Many NCAs (not: all) have delegated the data collection tasks. The rationale behind the delegations is to collect reference data in a more efficient and harmonised manner across Europe.5 The idea is that accordingly ESMA can function as a central EU facility for reference data.6 The legal basis for delegation is laid down in the ESMA Regulation.7 The ESMA Regulation makes clear that where tasks are delegated, the responsibility for supervisory decisions remain with the delegating NCA.8

b9e8294e-0b4d-421c-a060-5d7338aca4db

Overview of data flow for reference data in case of a non-delegating NCA9

c2c6bb69-34d4-4e80-a3e9-9ce330226ef7

Overview of data flow for reference data in case of a delegating NCA10

Deze functie is alleen te gebruiken als je bent ingelogd.