ESMA clarifies various aspects of MiFID II questions

ESMA today published a number of updates to different Q&As on MiFID II aspects.

The Questions and Answers (Q&As) regarding commodity derivatives under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) aim to promote common supervisory approaches and practices in the application of MiFID II and MiFIR in relation to commodity derivatives topics. This update includes new answers regarding:

  • Position limits;
  • Ancillary activities;
  • Position reporting.

ESMA also updated its Q&As regarding market structure issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

This update includes new answers regarding:

  • Tick size regime;
  • Direct Electronic Access (DEA); and
  • Multilateral systems.

The update to the ESMA Q&As regarding data reporting under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR) clarifies

  • transaction reporting for primary issuances;
  • corporate events;
  • portfolio management; and
  • swaps related to indices.

Lastly, ESMA published an update to its Q&As regarding transparency and market structure issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR), which includes new answers regarding:

  • Pre- and post-trade transparency, and for equity and non-equity instruments;
  • Systematic Internalisers;
  • Data reporting service providers; and
  • Third country issues.

The Q&A mechanism is a practical convergence tool used to promote common supervisory approaches and practices. ESMA will periodically review these Q&As on a regular basis to update them where required and to identify if, in a certain area, there is a need to convert some of the material into ESMA Guidelines and recommendations.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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