In a press release dated June 30 2017, the Autorité des Marchés Financiers (AMF), the French financial regulator, launched a public consultation on the pre- and post-trade transparency mechanisms provided for under MiFID 2.
The entire MiFID II package, which comes into effect on January 3 2018, expands the pre- and post-trade transparency requirements for financial instruments traded in the European Union.
The AMF noted that MiFID II transparency requirements are not limited to equities as the new legislation extends the scope to cover an expanded range of financial instruments. This includes not only equities and equivalent instruments, such as exchange-traded funds (ETFs), but also similar instruments such as bonds and derivatives.
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MiFID II requirements also apply to a wide range of trading venues, regardless of their status, and covers systematic internalisers plus investment firms dealing over the counter (OTC) in the case of post-trade transparency requirements.
The requirements introduced under MiFID II intended to increase transparency in the OTC markets. Firms executing transactions must publish trade reports through an authorised Approved Publication Arrangement (APA), which checks trade reports for accuracy, before publishing to the wider market in a prescribed standard.
The AMF has declared in its official announcement that all market participants that are affected by the changes introduced by MiFID II can provide their feedback on the following points:
- Pre-trade transparency applicable to trading venues.
- Deferred publication of the details of transactions depending on their type or size.
- Transparency concerning the terms of OTC transactions in instruments listed on a trading venue.
Responses to the consultation must be sent in by 31 August 2017 at the latest, the agency said.