On 22 July 2024, the European Securities and Markets Authority (ESMA) issued a statement on the transition to the new regime for post-trade transparency of over-the-counter (OTC) transactions.

The statement complements the statement that ESMA made on 27 March 2024 on the transition for the application of the MiFIR review.

This latest statement concerns Designated Publishing Entities (DPEs). The MiFIR review introduced provisions empowering Member State competent authorities (NCA) to grant investment firms DPE status. Article 21a of MiFIR provides that when DPEs are a party to a transaction they shall be responsible for making the transaction public through an approved publication arrangement (APA). MiFIR further requires ESMA to establish a public register of all DPEs. Such register will specify the identity of DPEs and the classes of financial instruments for which they act as DPEs.

The statement also provides that:

  • Investment firms intending to become DPEs are encouraged to register with their NCA, indicating the classes of financial instruments for which they wish to take up this function along with other identifying information requested by the NCAs.
  • ESMA clarified in its public statement on 27 March 2024 that, until further notice, the previous regime, relying on Systematic Internalisers (SIs), should continue applying.
  • The set of rules applicable to reference data reporting, and the requirements for DPE in this respect, should become applicable as soon as the revised Regulatory Technical Standards 23 (RTS 23) starts applying and in the meantime the rules, both in Level 1 prior to the MiFIR review and in the current RTS 23 will continue to apply.
  • ESMA will start publishing the DPE register on 29 September 2024.
  • The DPE register will be initially made available on ESMA’s website in XLSX format and should allow market participants to prepare for the effective start of application of the DPE regime.
  • The new DPE regime for post-trade transparency will become fully operational on 3 February 2025.
  • ESMA expects that as of 3 February 2025, registered DPEs, which are party to a transaction, will make the transaction public through an APA. At the same time, ESMA expects that the current approach relying on SIs to make transactions public through an APA should stop applying as of this date.