ESMA has issued a statement to clarify how supervisors should apply the open access provisions of MiFIR for trading venues and CCPs in the light of Covid-19. The current temporary powers to grant exemptions from the open access provisions expire in early July.
ESMA understands that the current market environment may negatively impact trading venues and CCPs and increase their operational risk, and in turn this may impact the orderly functioning of markets or financial stability. It says national authorities should take this into account as relevant when taking decisions on open access requests.
FCA has noted and agreed with ESMA’s stance. It adds that the operation of processes necessary to assess open access requests will require senior management, legal, risk, compliance and IT resources and the extra effort required to do this with staff working remotely may detract from the priority of maintaining resilient and orderly markets.