European Securities and Markets Authority publishes final report on bond transparency and 'reasonable commercial basis' for market data under MiFIR Review

The European Securities and Markets Authority has published its final report covering mandates under the MiFIR Review for the review of the regulatory technical standards on transparency requirements for bonds, structured finance products and emission allowances, and the RTS on the "reasonable commercial basis" upon which firms should provide market data.

Regarding the non-equity transparency requirements set out in Commission Delegated Regulation (EU) 2017/583, the draft RTS propose amendments to: (i) the pre-trade transparency requirements, in particular in relation to the definition and characteristics of central limit order books and periodic auctions; (ii) the pre-trade waiver regime; (iii) the deferral regime for bonds, structured finance products, and emission allowances; and (iv) specific transparency fields and flags.

The draft RTS on "reasonable commercial basis" cover the obligation to make pre- and post-trade data available on a reasonable commercial basis. They include requirements on the calculation of fees, cost, and margins of market data; non-discriminatory access; unbiased and fair contractual terms; and the content, format, and terminology of the market data policies.

The final report has been submitted to the European Commission, which has three months to decide whether to endorse the proposed RTS. ESMA intends to publish another consultation paper addressing the transparency mandate for derivatives in early 2025.

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