Wednesday December 21 2016

News Source: Fund Regulation

Focus: MIFID and MIFIR

Type: General

Country: European Union




The European Securities and Markets Authority (ESMA) has published its Questions and Answers (Q&As) document regarding the implementation of the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

MiFID II and MiFIR, together with the Commission delegated acts as well as regulatory and implementing technical standards, will be applicable from 3 January 2018.

The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR in relation to regulatory data reporting topics. It provides responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of MiFID II and MiFIR on:

  • Legal Entity Identifiers (LEI) of the issuer; and
  • Date and time of the request of admission and admission.

Where the LEI of the issuer cannot be obtained, operators of trading venues and systematic internalisers are advised to inform the issuers pertaining to the financial instruments concerned of their obligation to obtain the LEI of the issuer of every financial instrument in order to comply with the requirements under Article 3(2) of the MiFIR RTS, Article 1 of the MAR RTS8 and Article 2 of the MAR ITS.

The Global Legal Entity Identifier Foundation (GLEIF) has introduced the concept of ‘Registration Agent’. This facility will enable trading venues and systematic internalisers to assist the issuer applying for the LEI to access the network of LEI issuing organisations. Further information on the ‘Registration Agent’ arrangements is available on the GLEIF website.

The information about the LEI of the issuer of the financial instrument is essential to determine the relevant competent authority pursuant to Article 16 of RTS. For this reason, it is essential that the LEI pertaining to the issuer of the financial instrument and not that of the ultimate parent of the issuer is provided.

Click on the above link to view the Q&A document.