What is ESMA and MiFID?

What is ESMA and MiFID?

The European Securities and Markets Authority (ESMA) has published today its final technical advice (TA) and launches a consultation on its draft regulatory technical and implementing standards (RTS/ ITS) regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

What is an ESMA common supervisory action?

The CSA contributes to fulfilling ESMA’s mandate on building a common supervisory culture among NCAs to promote sound, efficient, and consistent supervision throughout the EU. ESMA’s promotion of supervisory convergence is done in close cooperation with NCAs.

What is the ESMA register?

ESMA fulfils its mission to enhance investor protection and promote stable and orderly financial markets by facilitating access to relevant registers and statistical data for market participants, regulators and the general public.

What is an ESMA report?

ESMA makes recommendations to issuers and auditors to improve future financial and non-financial reports, by assessing how issuers comply with International Financial Reporting Standards (IFRS) and non-financial reporting obligations and adhere to ESMA’s recommendations.

What are MiFID regulations?

The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union.

Does MiFID apply to UK after Brexit?

Mifid II will have some of its ‘rough edges smoothed off’ in post-Brexit Britain, but there is no appetite to completely tear up the EU’s protection for investors in UK law, according to regulator the Financial Conduct Authority (FCA).

What is supervisory convergence?

Supervisory convergence does not mean a one-size fits all approach. It means that ESMA promotes the consistent and effective implementation and application of the same rules and using sufficiently similar approaches for similar risks. The overall goal is to strive for comparable regulatory and supervisory outcomes.

Does ESMA apply to UK?

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has announced today its decision to extend the application of the recognition decisions under Article 25 of EMIR (Regulation (EU) 648/2012) for the three CCPs established in the United Kingdom.

What is MiFID II regulation in simple terms?

MiFID II improvements The rules governing high-frequency-trading impose a strict set of organisational requirements on investment firms and trading venues, and the provisions regulating the non-discriminatory access to central counterparties (CCPs), trading venues and benchmarks are designed to increase competition.

Who does the benchmark regulation apply to?

1. Who does the EU Benchmark Regulation apply to? It applies to index providers (administrators), index users (supervised entities), and parties that contribute data (contributors) to an index. It also applies to index providers based outside of the EU if their indices are used as benchmarks within the EU.

Who is subject to EMIR regulation?

EMIR requires the reporting of all derivatives, whether OTC or exchange traded, to a trade repository. EMIR covers entities that qualify for derivative contracts in regards to interest rate, equity, foreign exchange, or credit and commodity derivatives.

What is EMIR regulatory reporting?

EMIR mandates reporting of all derivatives to Trade Repositories (TRs). TRs centrally collect and maintain the records of all derivative contracts. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.

What should be reported under MiFIR?

Who has to report transactions? Under MiFID II/MiFIR, operators of all trading venues (including Multilateral Trading Facilities, MTFs, and Organised Trading Facilities, OTFs) must report transactions traded on their platform when executed through their systems by a firm which is not subject to the regulation.

What is the difference between MiFID and MiFID 2?

The main difference between MiFID and MiFIR is that the directive (MiFID) sets out the goals that EU member states should strive to meet, whereas the regulation (MiFIR) imposes rules that all countries must follow. MiFID II is a legislative act that sets out goals that all countries in the EU need to achieve.

What are the MiFID classifications?

MiFID introduces a new client classification regime and distinguishes between three types of clients: “retail clients”, “professional clients” and “eligible counterparties”.

What is the meaning of MiFID?

MiFID is the markets in financial instruments directive (Directive 2004/39/EC). In force from 31 January 2007 to 2 January 2018, it is a cornerstone of the EU’s regulation of financial markets. It governed. provision of investment services in financial instruments by banks and investment firms.

Whats the difference between Emir and MiFID?

MiFID II and EMIR share the regulatory coverage of the OTC derivatives market. While MiFID II introduces a trade obligation for OTC derivatives as part of its market structure related measures, EMIR addresses the duty for central clearing. In this case, both regulations complement each other.

Are UK firms still subject to MiFID?

Until the UK formally withdraws from the European Union, EU law such as MiFID I will continue to apply, and firms should continue to work on implementation of new EU legislation such as MiFID II.

Does UK still follow MiFID?

Following the on-shoring of EU legislation post-Brexit, UK MiFID is now spread across primary and secondary legislation, the FCA’s Handbook and regulatory technical standards.