MiFIR introduces pre-trade and post-trade transparency requirements in respect of bonds, structured finance products, emission allowances and derivatives, subject to certain conditions and to certain waivers. In particular, Article 9(1)(e) of MiFIR provides for a waiver specific to package orders: under certain conditions, package orders can be granted a waiver from pre-trade transparency, but the use of that waiver is more limited when the package order is considered liquid.

Article 9(6) of MiFIR empowers the European Commission (Commission) to adopt, following a submission of a draft regulatory technical standard (RTS) by the European Securities and Markets Authority (ESMA), and in accordance with Articles 10 to 15 of Regulation No (EU) 1095/2010, a Delegated Regulation establishing a methodology for determining those package orders for which there is a liquid market.

The draft RTS was submitted to the Commission on 28 February 2017.

The Commission has now published the draft text of Commission Delegated Regulation (EU) No…/… of XXX supplementing MiFIR on markets in financial instruments with regard to package orders. The Delegated Regulation comprises the following:

  • Article 1 sets out the general methodology for establishing for which package orders there is a liquid market as a whole; and
  • Articles 2 to 5 specify the conditions under which a package order can fulfil the asset-specific criteria set out in Article 1(b), respectively for interest rate derivatives (Article 2), equity derivatives (Article 3), credit derivatives (Article 4) and commodity derivatives (Article 5).

View Commission Delegated Regulation (EU) No…/… of XXX supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to package orders,16 August 2017