1. MIFID II

1.1 ESMA published updated manual on post-trade transparency under MiFID II

On 8 January 2024, the European Securities and Markets Authority (ESMA) published an updated version of its manual on post-trade transparency (MiFID Post-Trade Transparency Manual) under the Markets in Financial Instruments Directive 2014/65 (EU) (MiFID II) and the Markets in Financial Instruments Regulation 600/2014 (MiFIR).

The MiFID Post-Trade Transparency Manual includes the following updates:

  • A correction related to the type of transactions subject to post-trade transparency; and
  • Includes guidance on non-equity transparency calculations.

ESMA has outlined that the MiFID Post-Trade Transparency Manual will soon be further updated upon the review of MiFID II and MiFIR and related delegated legislation.

A copy of the updated MiFID Post-Trade Transparency Manual can be accessed here.

1.2 Updated ESMA opinion on assessment of pre-trade transparency waivers under MiFIR

On 8 January 2024, ESMA published an updated version of its opinion on the assessment of pre-trade transparency waivers for equity and non-equity instruments (Opinion).

In its updated Opinion, ESMA provides guidance on the main issues identified by ESMA to date in the processing of notified waivers issued by National Competent Authorities (NCAs) under Articles 4(4) and 9(2) of MiFIR.

The updated Opinion aims to clarify the MiFIR requirements for NCAs in respect of pre-trade transparency waivers.

A copy of the Opinion can be accessed here.

1.3 ESMA launches common supervisory action on MiFID II pre-trade controls

On 11 January 2024, ESMA issued a press release to announce the launch of a common supervisory action (CSA) with NCAs on the implementation of pre-trade controls (PTCs) by investment firms using algorithmic trading techniques.

The CSA will be completed during 2024 and will address how firms using algorithmic trading techniques are using PTCs and assess firms' frameworks relating to PTCs.

A copy of ESMA's press release can be accessed here.

1.4 Error & omission notification forms for MiFIR transaction reporting

On 12 January 2024, the Central Bank published an Operational and Technical Arrangements document which sets out the arrangements for submitting Error & Omission Notification forms under Article 15(2) of Commission Delegated Regulation 2017/590 for MiFIR Transaction Reporting Purposes.

A copy of the Operational and Technical Arrangements document can be accessed here.

1.5 Updated version of guidance for completion of Annual Conduct of Business Return

On 18 January 2024, the Central Bank published an updated version of its Annual Conduct of Business Return - Guidance for Completion document (Guidance).

The Annual Conduct of Business Return (Return) is applicable to all investment firms authorised under the Irish MiFID Regulations and branches established in Ireland by firms authorised in another Member State and providing services in Ireland under the Irish MiFID Regulations. The reporting date for the Return is 31 December and the Return is required to be submitted (via the Central Bank's Online Portal) by the last working day of March in the following year.

The updated version of the Guidance reflects updates made to the latest version of the Return such as the new section on marketing spend as well as the requirement for firms to provide details on complaints involving crypto-assets and initial coin offerings.

A copy of the updated Guidance is available here.

1.6 ESMA updates Q&As on MiFIR

On 2 February 2024, ESMA published a press release to announce that it had updated its Questions and Answers (Q&A) document on the Markets in Financial Instruments Regulation (MiFIR) transaction reporting.

The updated Q&A on MiFIR transaction reporting addresses how different national identifiers specified in Annex II of Commission Delegated Regulation (EU) 2017/590 (RTS 22) are represented.

A copy of ESMA's press release can be accessed here.

The updated Q&A can be accessed in the ESMA Q&A IT-tool which can be accessed here.

1.8 ESMA issues statement on deprioritisation of best execution reporting supervisory actions

On 13 February 2024, ESMA issued a public statement (Statement) on the deprioritisation of supervisory actions on the obligation to publish RTS 28 reports in light of the agreement on the MiFID II and MiFIR review.

Article 27(6) of the MiFID II Directive obliges investment firms to publish information annually on the identity of execution venues and on the quality of execution. The format and content of such information to be published is specified in Commission Delegated Regulation (EU) 2017/576 (RTS 28 reports).

The adopted level 1 texts of the MiFID II review (as adopted by the European legislators in June 2023) provides for the deletion of Article 27(6) of the MiFID II Directive.

In its Statement, ESMA outlines that the obligation to produce RTS 28 reports will continue apply to firms throughout 2024 and until the amending MiFID II Directive is transposed into member states. ESMA therefore expects national competent authorities not to prioritise supervisory actions towards investment firms in relation to the publishing of RTS 28 reports.

A copy of the Statement can be accessed here.

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