ESMA is consulting on its draft technical standards specifying the trading obligation for derivatives under MiFIR. It has revised its previous approach, and now wants comments by 31 July on the new proposals. These include how to phase-in the trading obligation.
The MiFIR trading obligation is closely linked to EMIR. Once a class of derivatives needs to be centrally cleared under EMIR, ESMA has to decide whether they should be traded on a MiFID 2 trading venue or an equivalent third-country venue, based on tests of venue and liquidity. Following ESMA’s previous consultation, it proposes some changes to the liquidity analysis for certain interest rate derivatives and credit default swaps