8.III.1.2.3 Excluded transactions

Different to the regime for RMs and MTFs, MiFID I covered an exception for the applicability of the MiFID I post-trade transparency obligations for investment firms. The MiFID I Directive required the Commission to clarify the application of post-trade disclosure by investment firms ‘to transactions involving the use of shares for collateral, lending or other purposes where the exchange of shares is determined by factors other than the current market valuation of the share’.1 The MiFID I Implementing Regulation specified the MiFID I Directive, noting that the reference to a ‘transaction’ did not include any of the following:

Where one of the situations under points (a-c) applied, the investment firm trading outside an RM or MTF was not required to publish post-trade transparency under MiFID I. The exemption of the MiFID I Implementing Regulation can be seen as a specification of the MiFID I Directive requiring share transactions for collateral, lending or other purposes where the exchange of shares is determined by factors other than current market valuation of the share to be considered for the application of the MiFID I post-trade transparency rules.4 The MiFID I exemption was in place to reduce the source of costs to investment firms outside RMs and MTFs in terms of equity post-trade transparency obligations. The costs of post-trade data publication were not believed to be outweighed in case of the transactions under (a-c).