The European Commission has adopted a Commission Delegated Regulation supplementing MiFIR with regard to regulatory technical standards (RTS) on clearing access in respect of trading venues and central counterparties. The power to adopt the Delegated Regulation is provided for under Article 35(6) and Article 36(6) of MiFIR. Under these provisions, the Commission is empowered to adopt a Delegated Regulation to specify the conditions, under which trading venues and central counterparties may deny, or have to provide, trading respectively clearing access in a non-discriminatory way, in order to allow for open and effective competition between market infrastructures.
The Delegated Regulation is set out as follows:
- chapter 1 sets out the grounds for denial of access, having regard to the anticipated volume of transactions, operational risks and complexity or other factors creating significant undue risk;
- chapter 2 sets out the conditions under which access must be permitted, the purpose which is to ensure that the on-going access arrangement is effective and non-discriminatory whilst ensuring that both parties comply with certain requirements by setting out requirements on rights and obligations as well as terms and conditions;
- chapter 3 sets out the requirements to ensure that clearing of contracts from different trading venues is done in a non-discriminatory manner; and
- chapter 4 further specifies the procedure and method of calculating thresholds applicable to transitional arrangements in relation to the access obligations for newly created central counterparties or trading venues below a certain size.
An annex accompanying the Delegated Regulation has been published setting out certain notification forms.
The Commission has also adopted a Delegated Regulation supplementing MiFIR with regard to RTS for the maintenance of relevant data relating to orders in financial instruments. The Delegated Regulation lays out the details and format of order records to be maintained by trading venues for the purposes on passing them on to competent authorities. The Delegated Regulation lays out which technical elements of the order should be transmitted, and in which formats.
An annex accompanying the Delegated Regulation setting out certain tables has also been published.
