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MiFIR Review Consultation Package 4 - Transparency requirements for derivatives under MIFIR 2

  • Antonis Hadjicostas
  • Apr 6
  • 2 min read


On April 3, 2025, the European Securities and Markets Authority (ESMA) released the MiFIR Review Consultation Package 4, which focuses on transparency regarding derivatives, package orders, and the input/output data for the derivatives consolidated tape.


Overview


This review, outlined in Regulation (EU) 2024/7913, introduces two new articles: Article 8a for pre-trade transparency and Article 11a for post-trade deferrals. This effectively separates the non-equity regime into two segments: one for bonds, structured finance products (SFPs), and emission allowances (EUAs) under revised Articles 8 and 11, and another for derivatives governed by the new Articles 8a and 11a.


To ensure consistency across asset classes and in response to political guidance prioritizing bond transparency, ESMA has opted to address these issues separately. A final report regarding the transparency mandate for bonds, SFPs, and EUAs was published on December 16, 2024. The current consultation addresses the transparency requirements for derivatives as specified in Articles 8a and 11a.


Key Proposals


The consultation presents several significant proposals from ESMA:


  1. Transparency Regime for Derivatives: A new framework for exchange-traded derivatives (ETD) and over-the-counter (OTC) derivatives. This includes outlining the scope of derivatives subject to transparency, proposing new liquidity determinations for pre-trade waivers, and modifying fields and flags related to post-trade transparency.


    The table below provides an overview of the derivatives in scope of transparency.



  2. Deferral Regime: Establishing a new deferral regime for ETD and OTC derivatives, detailing various size thresholds and deferral durations for post-trade transparency.


  3. Amendments to Transparency Conditions: Proposing changes to the conditions under which MiFIR trade transparency requirements may not apply to transactions by members of the European System of Central Banks.


  4. Review of Package Order RTS: A reassessment of Commission Delegated Regulation (EU) 2017/2194 (‘Package order RTS’), particularly in light of new scope and liquidity determinations.


  5. Data Quality Standards: Developing draft regulatory technical standards that specify data quality requirements for prospective consolidated tape providers and data contributors for the OTC derivatives tape, as mandated by ESMA.


Next Steps


The consultation will remain open for comments until July 3, 2025.


ESMA plans to publish a final report and submit draft technical standards to the European Commission in the fourth quarter of 2025.

 
 

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