ESMA – Waivers from Pre-Trade Transparency

Anne PlestedThe aim of this document, published by ESMA (10/08/11), is to provide guidelines under the existing MiFID directive for competent authorities around the application of Waivers from Pre-Trade Transparency for Regulated Markets and MTFs.  Some examples of waivers granted by national competent authorities, considered at CESR or at ESMA level, are included for illustration purposes.

Under MiFID II, according to the leaked draft documents, a new trading venue category is introduced – Organised Trading Facility (OTF). The same pre- and post-trade transparency regime for Regulated Markets (RM) and MTFs will also apply to OTFs. e.g. a Broker Crossing System currently not obliged to comply with pre-trade transparency rules would apply to become registered as an OTF and then under the new rules either have to publish its lit order book or apply to the FSA to operate in the dark under one of the 4 waivers from pre-trade transparency.

The publication of these guidelines looks to be paving the way towards more stringent regulatory monitoring of the use of the existing waivers and consistency throughout Europe.

View the full document  ESMA – Waivers from Pre-trade Transparency

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