05 November 2015

ESMA publishes responses to the Consultation on draft implementing technical standards under MiFID II

Deutsche Börse Group

Draft ITS 1 on format and timing of the communications and the publication regarding the suspension andremoval of financial instruments from trading on a Regulated Market, an MTF or an OTF

·         With regard to the timing and format of communications and publications we argue to consider different characteristics of actions by including changes to the data structure.

·         In order to contain data flow in case related derivatives are affected by an action, a data field for related securitized derivatives affected should be introduced.

·         Finally, we argue for more flexibility to the individual process structure of each trading venue without unnecessarily delaying the communication of the information.

Draft ITS 2 under Article 61(5) of Directive 2014/65/EU

·         Deutsche Börse Group strongly appreciates the designation of a dedicated and advertised contact point specifically for the purpose of guiding the application process and in order to facilitate communication between the applicant and the competent authority where necessary. In this context, we like to recommend as well that clearly defined explanations on data fields, templates and procedures as well as details requested are being delivered to the applicant together with the application forms.

·         Furthermore, we would like to recommend clarifying how the gap between conducting the application process in 2016 and the foreseen application of the respective standard not before 3 January 2017 should be filled, if necessary by introducing an interims solution.

·         DBG would appreciate clarification with regards to authorisation requirements for market operators, especially if there will be any practical effect on the information to be submitted to the NCA by a market operator.

Draft ITS 3 on the format and timing of weekly position reports

Deutsche Börse Group argues for the exclusion of positions of retail investors in securitized derivatives from reporting requirements of ITS 3 as well as RTS 21 in order to avoid severe distortions of securitized derivatives’ markets which would substantially reduce investment choice for retail investors.

Full response

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Europex

Europex agrees with the proposed table, except for two elements:

It should be clarified that it is not the responsibility of the trading venues to make a distinction between risk reducing and other positions. In principal, trading venues can aggregate this information but they need to receive it from the market participants. The trading venues must not be held responsible and/or liable, if they do not receive the information, if they only receive the information partially, if they receive wrong information, if they do not receive the information on time or a combination thereof. Market participants should be allowed to update data that has already been sent by an exchange to ESMA ex-post in case that incomplete information had been sent to the reporting exchange.

 It consider it more appropriate, if ESMA instead of the trading venues calculates the changes from last week’s reports in order to avoid diverging results due to different calculation methods.

Full response

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CNMV Advisory Committee

1)    Suspension and removal of financial instruments from trading on a trading venue.

This refers to the time periods and formats for the publications envisaged in MiFID II in the event of suspension or removal of a financial instrument from trading.

2)    Notification and provision of information for data reporting service providers (DRSPs)

This refers to the forms and procedures for notification and disclosure on the part of data reporting service providers (DRSPs) in connection with both the application for authorisation by DRSP applicants as well as the notification of members of the management body of a DRSP and of any changes to its membership.

3)    Weekly aggregated position reports for commodity derivatives, emission allowances and derivatives of the latter

The draft ITS on the weekly report of the aggregate positions seeks to provide transparency and oversight vis-à-vis the new rules on position limits. Article 58 requires that trading venues draw up and publish, subject to certain minimum requirements, a weekly report on the aggregate market positions in commodity derivatives, emission allowances and derivatives of the latter. In this consultation paper, ESMA asks, in the context of article 58(7), about the submission of this weekly report to ESMA for it to publish the aggregate market positions.

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Full response

Consultation paper

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