|Over-the-counter or OTC|
|European Union Electricity Market Glossary|
In turn, pursuant to MiFIR characteristics, OTC trades include transactions which are non-systematic, ad-hoc, irregular and infrequent, are carried out between eligible or professional counterparties, and are part of a business relationship which is itself characterised by dealings above standard market size, and where the deals are carried out outside the systems usually used by the firm concerned for its business as a systematic internaliser.
Deferral regime applicable to investment firms trading OTC
In the Answer to Question 2 (updated on 3 October 2017, Questions and Answers on MiFID II and MiFIR transparency topics, ESMA70-872942901-35) ESMA underlined that the deferral regime applicable to OTC trades is determined by the deferral regime applicable in the EU Member State where the investment firm that has to make the transaction public is established.
The location of the Approved Publication Arrangement (APA) through which a transaction is made public is not relevant.
Where it is for an EU branch to make a transaction public, the deferral regime applicable in the Member State where that branch is located should apply.
ESMA also explained that as regards deferral regime for OTC transactions it is not relevant in what Member State given instrument is traded or admitted to trading on a trading venue.
For the said transactions only the deferral regime applicable to the investment firm that has to make a transaction public is relevant.
|Last Updated on Wednesday, 18 October 2017 19:22|