The European Securities and Markets Authority (ESMA) published a Final Report setting out proposed regulatory technical standards under the MiFIR Review covering derivatives trade transparency, package orders, and consolidated tape input and output data for over-the-counter (OTC) derivatives. The proposals introduce revised pre-trade and post-trade transparency requirements for exchange traded derivatives (ETDs) and OTC derivatives, aiming to increase transparency while protecting liquidity providers from undue risk. Key elements include a streamlined deferral regime, adjusted in response to stakeholder feedback, with specific changes affecting equity ETDs and single-name credit default swaps, and designed to be in place ahead of the go-live of the OTC derivatives consolidated tape provider (CTP). ESMA also adapted the package order RTS to align with the MiFIR Review transparency framework changes, and proposed amendments to the RTS on consolidated tape data quality requirements, including a list of fields to be transmitted to and disseminated by the OTC derivatives CTP and clarification of the bonds CTP scope regarding Exchange Traded Commodities and Exchange Traded Notes. Burden-reduction measures include consolidating derivative-related amendments into one review, setting a single application date across RTSs, removing transparency reporting to ESMA, using static thresholds that do not require annual updates, and streamlining post-trade data. The report has been submitted to the European Commission, which has three months to decide whether to endorse the proposed RTS. The new rules are expected to start applying on 1 March 2027.
European Securities and Markets Authority 2025-12-15
European Securities and Markets Authority finalises MiFIR Review standards on derivatives transparency and the OTC derivatives consolidated tape
The European Securities and Markets Authority (ESMA) released a Final Report proposing regulatory technical standards under the MiFIR Review, focusing on derivatives trade transparency, package orders, and consolidated tape data for OTC derivatives. Key proposals include revised transparency requirements for exchange traded and OTC derivatives, a streamlined deferral regime, and amendments to data quality requirements for consolidated tape providers. The report has been submitted to the European Commission for endorsement, with new rules anticipated to apply from 1 March 2027.