EUROPEAN UNION: ESMA Publishes its Transparency Calculations in accordance with MIFID II

Thursday January 25 2018

On 24^th January 2018, the European Securities Market Authority (ESMA) Released its Transparency Calculations which have been enacted under MIFID II.

MIFID II introduced transparency requirements for equities, bonds, structured finance products, emission allowances and derivatives. This empowers competent authorities (CAs) to waive the obligation for market operators and investment firms operating a trading venue, to make public pre-trade information for non-equity instruments. Furthermore, transactions in non-equity instruments  also benefit from deferred publication. In addition, for equity instruments the Regulation introduces a tick size regime.

CA’s  based in European Economic Area (with the exception of Poland) have delegated to ESMA the computation of transparency calculations including the transitional transparency calculations (TTC). To execute them, ESMA has compiled the information from Trading Venues of the Member States.

The list of transparency calculations includes:

• the equity TTC and tick size band assessment for both liquid and non-liquid instruments, in accordance with RTS 1 and RTS 11;
• the bond liquidity assessment, except for ETCs and ETNs, for both liquid and non-liquid instruments, in accordance with RTS 2; and
• the asset classes as defined in the Regulation and provides hyperlinks to data files containing the outcomes of the TTC for all non-equity instruments that have been classified as liquid in accordance with RTS 2.

For additional information click the link above