ISDA Responds to ESMA on Review of MIFIR Transparency Requirements

On October 1, 2021, ISDA submitted a response to the European Securities and Markets Authority’s (ESMA) consultation on the review of transparency requirement under the Markets in Financial Instruments Regulation (MIFIR). In the response, ISDA highlights the following aspects:

  • The application of concepts from equity markets should be avoided with respect to the regulation of derivatives.
  • There is a need to further differentiate bonds and derivatives and also exchange-traded derivatives and over-the-counter derivatives.
  • The use of ISINs is inappropriate for the purpose of transparency in derivatives markets, undermining reference data and transparency information.
  • It is premature to reform the current waiver regime (the size-specific-to-the-instrument and large-in-scale waivers) in light of the need to prevent liquidity makers and end users from undue risk.

Based on the feedback received from stakeholders, ESMA will publish a final report and submit draft technical standards to the European Commission in the first quarter of 2022.

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