ESMA Provides Opinions On Pre-Trade Transparency Waivers

ESMA today provided its first opinions on pre-trade transparency waivers to competent authorities under Article 29(1)(a) of the ESMA Regulation. These opinions contribute to a common supervisory culture and consistent supervisory practices. The decisions on ESMA opinions to competent authorities are taken by simple majority. 

The opinions published today relate to the MiFID compliance of two trading functionalities submitted for ESMA’s assessment by the relevant national competent authorities as part of the process originally developed by CESR in spring 2009. The substance of the individual opinions has been included (in red) in the table annexed to the document “Waivers from Pre-trade transparency, ESMA opinions and CESR positions” (ESMA/2011/241). As the opinions relate to confidential information, the substance of the individual opinions has been anonymised. According to these opinions, ESMA considered a reference price system proposed by a trading venue to be MiFID compliant, whereas a system intended to formalise negotiated trades was not considered to comply with the MiFID requirements for granting a pre-trade transparency waiver.”