The Futures Industry Association (“FIA”) and FIA Europe submitted the ninth and final Special Report in a series covering specific areas of the ESMA consultation process for the implementation and recast MiFID II and MiFIR. The final Special Report provides an overview of the proposals relating to transparency, set out in the recently published ESMA Discussion Paper and Consultation Paper.
According to the Special Report, transparency is a theme that permeates the primary legislation and the ESMA Discussion Paper. The Discussion Paper covers topics including (i) pre-trade and post-trade transparency requirements for equities; (ii) pre-trade and post-trade transparency requirements for non-equity instruments; and (iii) the systematic internalizer regime; and (iv) the definition of a “liquid market”, which is a key component of the transparency provisions.
Additionally, the ESMA Consultation Paper has eight sub-sections on transparency, spanning over 30 pages and analyzing, among others: (i) liquid markets for equities; (ii) the systematic internalizer regime; and (iii) pre-trade transparency requirements for systematic internalizer in non-equity instruments.
The Special Report on transparency briefly outlines these issues.
See: FIA Special Report: “Transparency”.
Related news: FIA Issues Special Report: “Defining High Frequency Trading” (June 25, 2014).