Systematic internaliser’s transparency - complicated puzzle
Sunday, 15 October 2017 22:35

 

It is difficult to capture all legal requirements with respect to transparency of the systematic internaliser’s quotes and transactions at a glance.

 

Firstly, the pre-trade and post-trade issues must be differentiated.

 

Another layer of complexity is introduced by distinct legal frameworks regulating systematic internaliser’s transparency for:

 

- bonds, structured finance products, emission allowances and derivatives, on the one hand, and


- shares, depositary receipts, ETFs, certificates and other similar financial instruments, on the other.

 

If to concentrate on products like bonds, structured finance products, emission allowances and derivatives firstly, it occurs that to determine transparency obligations we must separately analyse not only clients of the systematic internaliser and other market participants but also different categories of clients of the same systematic internaliser.

 

Liquid and illiquid markets have their specificities too.

 

To decode the respective requirements the diagram recently revealed by the ESMA is much helpful.

 

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Do not miss the NC RfG notification deadlines!
Friday, 29 September 2017 12:30

 

Considering the lapsing deadlines set by the Commission Regulation (EU) 2016/631 of 14 April 2016 establishing a network code on requirements for grid connection of generators (NC RfG) it may be useful, particularly for energy market participants carrying out significant investments in or the refurbishments of the generation fleet, to take account of some NC RfG notification requirements that may occur important.

 

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What does 'OTC equivalent' mean to you? Remarks on the dual nature of some key MiFID II definitions
Monday, 04 September 2017 06:30

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Complicated nature of MiFID II is expressed, inter alia, by the fact that given OTC derivative contract can be, concurrently - under the same MiFID II Directive - equivalent and not equivalent to the on-venue products.

 

This is not only the theoretical, cognitive disharmony but impacts directly on the scope of the trading position that can be taken in the derivatives market.

 

 

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MiFID II position limits exemption - practical clues
Friday, 25 August 2017 19:24

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The two facts that may occur important for many market participants as regards the MiFID II position limits are as follows:

 

1. if you do not expect to exceed position limit, there is no need to apply in advance for a position limits exemption;


2. you are not required to monitor the position limit compliance of your clients.

 

 

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Derivatives contracts on extra-EU trading venues at legal risk
Sunday, 04 June 2017 13:48

 

Annex to the ESMA's opinion decides whether any derivative contract concluded on third-country trading venue is covered by the EU position limits regime.

 

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Position limits - amended definition of a lot for energy products
Saturday, 03 June 2017 12:27

  

The European financial market's watchdog has updated on 31 May 2017 its Q&As on position limits framework under MiFID II.

 

The update relates to the ESMA's answer to the Question No. 2 (the original version thereof was issued on 19 December 2016) and deals with the problem of defining a lot in derivatives where the underlying asset is electricity.

 

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The EU regulations becoming strange
Friday, 02 June 2017 21:10

 

It is clear now that according to the EU financial regulator opinion the first notification under Article 2(1)(j) of MiFID II must be made by January 3rd of 2018.

 

Given that the calculation period to be covered by this notification includes also the year 2017 it is quite astonishing.

 

The objective lack of credible market data necessary to be aggregated in the calculations for the purposes of the above notification also did not prevent the regulator from requiring of market participants to do the impossible.

 

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