The European Commission has published the draft text of a Delegated Regulation supplementing the Markets in Financial Instruments Regulation (MiFIR) with regard to the treatment of package orders (i.e., interlinked financial transactions comprising various instruments which firms execute jointly in order to reduce transaction costs and for risk management purposes).
MiFIR provides for a waiver from pre-trade and post-trade transparency requirements for packaged orders where certain conditions apply. However, use of that waiver is more limited when the package order is considered liquid.
The Delegated Regulation sets out the general methodology for establishing for which package orders there is a liquid market as a whole, and specifies the conditions under which a package order can fulfil the asset-specific criteria, particularly for interest rate derivatives, equity derivatives, credit derivatives and commodity derivatives.
Provided there is no objection by the Council of the EU and the European Parliament, the Delegated Regulation will enter into force 20 days after its publication in the Official Journal of the EU (OJ). It will apply from 3 January 2018.