ESMA seeks feedback on changes to MiFID II and MiFIR

The European Securities and Markets Authority (ESMA) has launched a consultation on new reporting requirements from third-country firms to ESMA.

A draft of new technical standards on the provision of investment services and activities in the European Union has been released by ESMA and adapt how third-country investment services firms operate under MiFIR and MiFID II.

Its changes include new reporting requirements from third-country firms to ESMA on an annual basis. ESMA will also gain the power to ask third-country firms in the ESMA register to provide five years of data relating to all orders and transactions in the EU, whether that is on own account or on behalf of a client.

The regulator is drafting technical standards which will specify the information third-country firms must provide to ESMA so they can join the register of third-country firms and the information they will need to report annually.

It is also implementing technical standards which will specify the format information for the registration of a firm and the annual report should take.

ESMA will consider responses from the consultation while it drafts the technical standards.

The closing date for responses from stakeholders is 31 March 2020.

ESMA has been making various changes to the MiFID II and MiFIR regulations over the past couple of years. There have been numerous updates to its Q&A page to help businesses better understand what they ned to do and other changes, such as position limits and position management in commodity derivatives have been explored.

The regulation has been very tough to get to grips with due to it having multiple technical aspects to get used to and the complexity of reporting formats.

Despite the difficulty in understanding the regulation, compliance technology developer Cappitech believes regulators are not strict enough with penalties.

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