EUROPEAN UNION: ESMA Provides Further Guidance for Transactions on 3rd Country Trading Venues

Monday December 18 2017

On 18^th December 2017, the European Securities and Markets Authority (ESMA) published two revised opinions providing guidance related to third-country trading venues for post trade transparency and position limits under MiFIDII/MiFIR.

The opinions address the treatment of transactions executed by EU investment firms on third-country trading venues, for post-trade transparency under MiFIR, and the treatment of positions held in contracts traded on those venues for the position limit regime under MiFID II.

The revised opinions state that, pending an ESMA assessment of more than 200 third-country trading venues under the criteria in the two opinions, transactions on third-country trading venues do not need to be made post-trade transparent and/or positions held in those third-country venue contracts are not considered to be economically equivalent over-the-counter (EEOTC) contracts.

ESMA will carry out the determination of third-country trading venues and publish the results in the course of 2018.

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