On Jul. 22, ESMA issued statement on OTC post-trade transparency.
ESMA published a public statement on the transition to the new regime for post-trade transparency of OTC transactions, to provide further guidance to market participants.
The new statement complements ESMA's public statement published Mar. 27, 2024.
Follows EC Mar. 2024 issued interpretative notice, ESMA statement, see #206482.
Designated Publishing Entity Regime
The MiFIR review introduced provisions empowering national competent authorities (NCAs) to grant the status of designated publishing entity (DPE) to investment firms.
Under MiFIR, DPEs, when party to a transaction, will be responsible for making the transaction public through an approved publication arrangement (APA).
ESMA is required to establish public register for all DPEs by Sep. 29, 2024, specifying their identity and the classes of financial instruments for which they act as DPEs.
MiFIR review does not provide a transitional provision for application of DPE regime for post-trade transparency, but ESMA and the NCAs have agreed on a 2-step approach.
ESMA will will start publishing DPE register on Sep. 29, 2024, and new DPE regime becomes fully operational on Feb. 3, 2025, from which date registered DPEs, which are party to a transaction, will make the transaction public through use of an APA.
ESMA expects the current approach relying on systemic internalizers (SIs) to make transactions public through an APA should stop applying as of Feb. 3, 2025.
ESMA DPE Register
Investment firms intending to become DPEs are encouraged to register with their NCA.
NCAs will transmit the information to ESMA for inclusion on the future DPE register.
Granting of DPE status can start anytime from date of publication of this statement.
ESMA will publish first list of DPEs at end Sep. 2024, register will be updated regularly.
And will work on integrating register in its IT systems, aims to complete by end 2025.
Effectiveness
DPE public register to be published starting Sep. 29, 2024, DPE regime becomes fully operational from Feb. 3, 2025, when use of SIs to make transactions public will end.
Regulators
EU ESMA
Entity Types
B/D; CNSM; Depo; Exch; HF; IA; Inv Co; OTC
Reference
St ESMA74-2134169708-7345, 7/22/2024; MIFID/MIFID Dir 2014/65, Reg 600/2014; Reg 2024/791
