On 16 July 2020, the European Securities and Markets Authority (ESMA) published two final reports reviewing key provisions of the MiFID II/MiFIR transparency regime.
The First Report assesses the MiFIR transparency regime for equity instruments and contains proposals for targeted amendments regarding the transparency obligations for trading venues and specifically the double volume cap mechanism. This final report also contains proposals aiming at simplifying the structure of the transparency regime while trying to improve the overall pre- and post-trade transparency available to market participants.
The Second Report reviews the pre-trade transparency obligations applicable to systematic internalisers in non-equity instruments.
The proposals put forward in both reports aim to simplify the current complex transparency regime while trying to improve the transparency available and are taking into account the feedback received from market participants through consultations.
The reports are submitted to the European Commission and expected to be taken into consideration by the European Commission for further legislative proposals. ESMA stands ready to provide any additional technical advice on the legislative amendments suggested in the report.
ESMA’s press release can be found here.