European Commission
Transparency requirements for equity and non-equity instruments under MiFIR - European Commission adopts Delegated Regulations - 17 January 2023
The European Commission has adopted two draft Delegated Regulations amending Commission Delegated Regulation (EU) 2017/587 (RTS 1) and Commission Delegated Regulation (EU) 2017/583 (RTS 2), both made under the Markets in Financial Instruments Regulation (600/2014/EU) (MiFIR).
The draft Delegated Regulations amend and correct certain transparency requirements that apply to transactions in equity instruments (RTS 1) and non-equity instruments (RTS 2). The amendments relate to a number of reporting fields, flags and transitional provisions. They follow the European Securities and Markets Authority’s (ESMA) opinion on the proposed amendments published in December 2022, as previously reported in this Bulletin.
The Council of the European Union and the European Parliament will now scrutinise the draft Delegated Regulations. If neither object, they will enter into force 20 days after their publication of the Official Journal of the European Union. Parts of the Regulations will apply from 1 January 2024.
Webpage: Equity instruments
Webpage: Non-equity instruments
European Securities and Markets Authority
MiFID II disclosure rules - ESMA launches common supervisory action - 16 January 2023
The European Securities and Markets Authority (ESMA) has published a press release announcing the launch of a common supervisory action (CSA) with national competent authorities (NCAs) on disclosure rules under MiFID II. The CSA will be conducted during the course of 2023.
ESMA refers to the key role that marketing communications and advertisements can play in determining consumer behaviour and influencing investment decisions. It is therefore launching the CSA to assess the application by investment firms and credit institutions of the MiFID II requirements on marketing communications across the EU. Work will include:
- reviewing whether marketing communications (including advertisements) are fair, clear and not misleading, and how firms select the target audience for marketing communications, especially in the case of riskier and more complex investment products;
- considering marketing and advertising by firms through distribution channels, including apps, websites, social media and collaborations with affiliates such as influencers (noting that younger, less experienced investors, are particularly vulnerable when they operate online); and
- collecting information about possible ‘greenwashing practices’ observed in marketing communications and advertisements.
Press release
Manual on post-trade transparency under MiFID/MiFIR - ESMA publishes Consultation Paper - 19 January 2023
The European Securities and Markets Authority (ESMA) has published a Consultation Paper on its proposed manual on post-trade transparency. This follows the adoption by the European Commission of amendments to Commission Delegated Regulation (EU) 2017/587 (RTS 1) and Commission Delegated Regulation (EU) 2017/583 (RTS 2), as reported in this Bulletin. ESMA’s consultation is based on the Commission’s adopted texts due to the need to improve the data quality of post-trade transparency reports before the setting-up of a consolidated tape provider (CTP).
The manual is expected to provide a general overview of the post-trade transparency regime and will include, in addition to new level 3 guidance, references to level 1 (MiFID II and MiFIR), level 2 (RTS 1 and RTS 2) and level 3 (opinions and guidelines) measures, as well as guidance previously included in Q&As.
More specifically, the manual intends to address: (i) the scope of instruments and transactions that are subject to post-trade transparency; (ii) entities in charge of reporting and publishing post-trade transparency information; and (iii) which post-trade transparency information has to be made public, along with relevant timings. It will clarify the common aspects and the differences between the post-trade transparency regime and the transparency calculations relating to the scope of instruments and transactions. It also intends to tackle selected additional topics, a preliminary list of which is provided in the Consultation Paper.
The consultation closes on 31 March 2023. ESMA intends to publish a final report and the manual after the endorsement of the reviewed RTS 1 and 2.
ESMA Consultation Paper: Manual on post-trade transparency
Webpage
Press release
