Changes to the trade registration process for MiFIR pre-trade transparency requirements
In order to ensure regulatory compliance with pre-trade transparency requirements for pre-arranged transactions (also commonly known as ‘block trades’ or ‘OTC-cleared transactions’), as laid down in Art. 8 of the Markets in Financial Instruments Regulation (MiFIR), Commission Delegated Regulation 2017/583 and the ESMA Q&A on MiFID II and MiFIR transparency topics, EEX will adapt its trade registration procedures as of 1 January 2020
The EEX solution was developed with a focus on minimizing the impact on the existing trade registration process on the member side, while at the same time meeting the regulatory requirements to provide transparency for pre-arranged transactions that can be acted upon by third parties before a trade is executed.
What are the envisaged changes?
For every pre-arranged transaction that does not benefit from a waiver (“Large In Scale” – for larger trades above specified thresholds – and “Illiquid Instruments”) or an exemption, EEX will ensure pre-trade transparency by redirecting automatically the respective trading interests of both counterparties to a new platform, where it will trigger a volume auction at the price of the pre-arranged transaction. Trading participants who intend to interact manually with the platform are able to apply for a respective access.
For more information please read our customer info and our related Q&A:
Pre-Trade Transparency Downloads
|03/12/2019||Questions & Answers (271 KB)|
|20/03/2020||Large in Scale Parameters (217 KB)|
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