Amendments to L1 MiFIR - 15/11/2023

The European Council has recently put forward amendments to the L1 text of MiFIR (Markets in Financial Instruments Regulation). This piece aims to summarise the key changes that will impact reporting obligations.

Upcoming Steps

Adoption by Parliament: Expected in Q1 2024.
Drafting of Updated RTS 22 by ESMA: Following adoption, the European Securities and Markets Authority (ESMA) will have 18 months to draft updated RTS 22 in accordance with MiFIR Article 26 (9).
Implementation Period: It is anticipated to be up to 18 months, though this is yet to be confirmed.

See updates added on 26/01/24 at bottom of article.

Ref	Item	Description	Reference
1	NCAs	Increase in obligation for NCAs sharing reporting data	MiFIR Article 26(1)
2	OTCs in scope	Off-venue OTC trades which fall within the clearing obligation added to transaction reporting requirements	MiFIR Article 26(2)
3	Identification of firms subject to reporting obligation	Added to L1 texts, new requirement	MiFIR Article 26(3)
4	TvTIC	Added to L1 texts, from RTS 22	MiFIR Article 26(3)
5	Short selling flag	Removed from L1 texts	MiFIR Article 26(9d)
6	Operators of venues	Clarified delegated reporting obligation for operators of venues. Updated from ‘firm’ to ‘Any member, participant or user’	MiFIR Article 26(5)
7	Branch Reporting	Added to L1 texts, from RTS 22	MiFIR Article 26(8)
8	Effective dates	Added to L1 texts, from RTS 22	MiFIR Article 26(3, 9c)
9	Waivers	Removed from L1 texts	MiFIR Article 26(3, 9c)
10	Linking of aggregated orders	New requirement. Exact requirements to be confirmed in RTS	MiFIR Article 26(9j, 9k)
11	Reporting review	Commitment for a more detailed review within 4 years	MiFIR Article 26(11)
12	Fund managers	Commitment to review scope of reporting requirements include to AIFMs, and management companies within 12 months	MiFIR Article 52 (14b)

These amendments mark significant changes in the regulatory landscape, specifically in the realm of financial reporting. Stakeholders are advised to stay updated on these developments, especially as they progress through the legislative process.

Update to amendments to MifID II

The article summarises the changes in MiFID II Article 26 and speaks about the next steps, which are:

Adoption by Parliament: Expected in Q1 2024.
Drafting of Updated RTS 22 by ESMA: Following adoption, the European Securities and Markets Authority (ESMA) will have 18 months to draft updated RTS 22 in accordance with MiFID II Article 26 (9).
Implementation Period: It is anticipated to be up to 18 months, though this is yet to be confirmed.

Since then, there has been a reading and debate on 15 January, 2024 with a vote cast on 16 January, 2024. The vote, which can be found here: Texts adopted - Amendments to the MiFID II, provisionally agreed the changes:

Adopts its position at first reading hereinafter set out;
Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
Instructs its President to forward its position to the Council, the Commission and the national parliaments.

This is progressing as expected and we can now prepare for the drafting of updated RTS 22.