The Presidency of the Council has tabled new compromise texts for the Markets in Financial Instruments Regulation (MiFIR) and recast Directive (MiFID 2). They introduce the following in MiFIR:
- clarifications on the opt-out for smaller trading venues from requirements not to discriminate against central counterparties (CCPs) wishing to access and clear trades executed in the venue;
- new mandates for ESMA to develop draft regulatory technical standards;
- power for competent authorities to request information when setting transparency and trading obligations, and determining when a firm is a systematic internaliser;
- obligation to trade shares admitted to trading on a regulated market, multilateral trading facility, organised trading facility or systematic internaliser, unless the trades are non-systematic or they take place between professional counterparties and do not contribute to price discovery. Until now, the trading obligation was part of MiFID 2, the recast Directive; and
- removal of the cap on the volume of permitted trading under the waiver in article 4.1(a) of MiFIR. The cap has been replaced by a minimum threshold requirement for the size of the orders matched by the system using a waiver. The post-implementation Commission report on the impact of the transparency obligations will analyse whether the waiver in article 4.1(a) is harmful to price formation.