EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/11.II.2:11.II.2 FESCO guidance

EU Equity pre- and post-trade transparency regulation (LBF vol. 21) 2021/11.II.2

11.II.2 FESCO guidance

Documentgegevens:

mr. J.E.C. Gulyás, datum 01-02-2021

Datum: 01-02-2021
Auteur: mr. J.E.C. Gulyás
JCDI: JCDI:ADS267046:1
Vakgebied(en): Financieel recht / Bank- en effectenrecht
Financieel recht / Europees financieel recht
Financiële dienstverlening / Financieel toezicht

FESCO (predecessor of CESR and ESMA) gave limited guidance with respect to data publication. FESCO only noted that ‘(a) RM should ensure that its publication arrangements cover all transactions conducted under its rules, whether or not those trades are executed by means of the market’s facilities (e.g. its electronic order book)’.1 FESCO in effect only referred to the scope of the publication arrangements of RMs. FESCO made clear that an RM also needed to publish pre- and post-trade data for trades executed only under the RM rules, that is - without the technical system of the RM.2

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FESCO, Standards for regulated markets under the ISD, December 1999 (99-FESCO-C), p. 11.

FESCO, Standards for regulated markets under the ISD, December 1999 (99-FESCO-C), p. 11. MiFID I institutionalised this FESCO recommendation by noting that a ‘system’ of an RM (and MTF) includes both (a) the trading system used for order execution (e.g. an electronic order-book of the RM) and (b) trades performed under the rules of the RM (or MTF) (recital 6 MiFID I Directive). A similar provision is in place under MiFID II (recital 7 MiFIR). See in this context also ESMA guidance under MiFID II, noting that ‘other non-automated systems or repeatable arrangements that achieve a similar outcome as a computerized system, including for instance where a firm would reach out to other clients to find a potential match when receiving an initial buying or selling interest, would also be characterised as a system (…)’ (ESMA, Q&A on MiFID II and MiFIR market structure topics, 29 May 2020 (ESMA70-872942901-38), Answer 10).