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15th November 2023

Amendments to L1 MiFIR

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

  1. Adoption by Parliament: Expected in Q1 2024.

  2. 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).

  3. 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:

  1. Adoption by Parliament: Expected in Q1 2024.

  2. 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).

  3. 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:

  1. Adopts its position at first reading hereinafter set out;

  2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

  3. 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.

Useful links:

MiFIR Article 26(1)

MiFIR Article 26(2)

MiFIR Article 26(3)

MiFIR Article 26(3, 9c)

MiFIR Article 26(5)

MiFIR Article 26(8)

MiFIR Article 26(9d)

MiFIR Article 26(9j, 9k)

MiFIR Article 26(11)

MiFIR Article 52 (14b)