ESMA urges European Commission to move to next phase for certain MiFID II/MiFIR changes

The European Securities and Markets Authority (ESMA) has encouraged the European Commission to move to stage three for the transparency requirements under MiFID II/MiFIR.

This comes as ESMA publishes its annual review on the regulations.

In the document, which can be read here, it believes the Commission should move to the next stage for the  average daily number of trades threshold used for the quarterly liquidity assessment of bonds.

It also believes the proposals for pre-trade size specific to the instrument threshold for bonds can also progress to the next step.

However, ESMA stated the European Commission should halt progression of the pre-trade size specific to the instrument threshold for the other non-equity instruments proposal. This is because the regulator deems the level of completeness and quality of data to be insufficient to conduct the annual transparency calculations in 2020 for several instrument classes.

As for the proposals moving to stage three, ESMA hopes they can improve the pre and post-trade transparency available to market participants in the bond market.

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