Article 50 of MiFID II introduces accuracy requirements, as it refers to the obligation of trading venues and their members/participants to record the date and time of any “reportable event using an accurate time source”. In particular, Article 50(1) of MiFID II requires Member States to oblige all trading venues and those accessing the venues to trade to synchronise the business clocks they use to record the date and time of any reportable event.
Under Article 50(2) MiFID II, the European Securities and Markets Authority (ESMA) is required to develop draft regulatory technical standards (RTS) to specify the level of accuracy to be used for clock synchronisation in the EU, according to international standards.
ESMA submitted draft RTS to the European Commission on 28 September 2015.
The Commission has now adopted a Delegated Regulation supplementing MiFID II with regard to the RTS for the level of accuracy of business clocks. The Delegated Regulation specifies the level of accuracy to be used for clock synchronisation across all trading venues and their members or participants in the EEA according to international standards. It specifies the granularity with which venues and their members have to synchronise their business clocks with. It also specifies the requirements to demonstrate the above.
The Delegated Regulation is subject to scrutiny by the Council of the EU and the European Parliament.
