Wednesday October 11 2017
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: European Union
On October 10th 2017, the European Securities and Markets Authority (ESMA) issued Question and Answers (Q&As) on post-trading issues regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
The document focuses on Article 2(1) of Commission Delegated Regulation (EU) 2017/582, which holds that trading venues must provide that the client becomes counterparty to the cleared derivative transaction, pursuant to direct or indirect clearing arrangements.
The Q&A’s state that for Trading venue rules to comply with this condition a member/participant must be satisfied that such clients have direct or indirect clearing arrangements to become counterparty to the cleared transaction resulting from that trade.
The Q&A’s are intended to provide clarity on how Post Trading will be affected in the wake of MIFID II and how investors can counteract any ramifications of this.
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