ESMA final report on systematic internaliser ITS, volume cap and transparency calculations and trading venue RTS

The European Securities and Markets Authority (ESMA) has published a final report in relation to certain changes being made as a result of the MiFID II/MiFIR review, together with an accompanying press release. The changes covered by this final report were part of the third consultation package following the MiFID II/MiFIR review, and relate to:

• A new set of implementing technical standards for investment firms notifying competent authorities when it gains the status of systematic internaliser or decides to opt-in to the systematic internaliser regime. ESMA confirmed that it is making some changes to the original proposals, including reducing the number of reporting fields in the notification template to ease the reporting burden and extending the notification period from two weeks to 20 calendar days. ESMA also confirmed it will discuss with competent authorities areas where further guidance is required.
• Proposed amendments to Commission Delegated Regulation 2017/577 (RTS 3), the regulatory technical standards addressing the volume cap mechanism and MiFIR transparency calculations. Substantial changes are being made in light of the phasing-out of daily reporting requirements for trading venues, approved publication arrangements and consolidated tape providers. Once revised, the amended RTS 3 will focus on three areas: (i) ad-hoc requests from ESMA and competent authorities; (ii) derivative trading obligation reporting; and (iii) single volume cap reporting.
• Recast regulatory technical standards to incorporate new requirements on circuit breakers and other amendments in light of the EU Digital Operational Resilience Act.

ESMA submitted the final report to the European Commission on 10 April, which now has three months to decide whether to endorse the proposed amendments to RTS 3 and 7, and the proposed ITS.

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