ESMA updates Q&A on 21.12.2020

December 21, 2020

The European Securities and Markets Authority (ESMA), has updated its Questions and Answers on OTC requirements and reporting issues under EMIR.


The Q&A document explains in newly added answer (e) to OTC Question 1: that transactions executed on UK markets after Brexit date (which changes the status of UK markets to third country markets not considered equivalent) should be considered OTC transactions.

For backreporting purposes, any transactions executed before Brexit date, but reported after Brexit date, should not be considered OTC.


Recent update also clarifies interpretation of term ‘trading venue’ in reference to recognising ETDs by:

replacing reference to Article 2(8) of the Commission Regulation (EC) No 1287/2006 (‘trading venue’ means a regulated market, MTF or systematic internaliser acting in its capacity as such, and, where appropriate, a system outside the Community with similar functions to a regulated market or MTF)

with reference to Article (4)24 of the Directive 2014/65/EU (‘trading venue’ means a regulated market, an MTF or an OTF).