3 February 2021, The European Securities and Markets Authority (ESMA), EU’s securities markets regulator, has updated its Questions and Answers (Q&As) regarding market structures issues under MiFID II and MiFIR. [ESMA70-872942901-38]
The newly updated Q&As now include clarification for:
- The classification of trades executed via Direct Electronic Access on-venue DEA should not be considered as a series of trades and should be reported as a single trade submitted by the DEA user and executed on-venue.
- Matched Principal Trading engagement of Investment Firms and how to distinguish them from Systematic Internalising activities. In accordance with the newly added answer the operation should not be treated as systematic internaliser activities, unless these transactions are occasional and not on a regular basis, or these transactions are executed on a trading venue.
The purpose of ESMA Q&As is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR.
Our team here at Point Nine, has examined the updates and ready to answer to any questions you may have. Feel free to contact us directly.
