On 3 April 2025, the European Securities and Markets Authority (ESMA) published MiFIR Review Consultation Package 4; On transparency for derivatives, package orders and input/output data for the derivatives consolidated tape.

Background

The MiFIR review (Regulation (EU) 2024/7913) introduces two new articles, Article 8a for pre-trade transparency and Article 11a for post-trade deferrals, that effectively separate the non-equity regime into two – one for bonds, structured finance products (SFPs) and emission allowances (EUAs) under the amended Articles 8 and 11; and another one for derivatives, with the new Articles 8a and 11a. In order to ensure a consistent approach of the transparency regimes in each asset-class and reflecting the clear political steer for prioritising the review of the transparency regime for bonds, ESMA decided to tackle these mandates in separate publications. On 16 December 2024, ESMA published a final report which addresses the transparency mandate for bonds, SFPs and EUAs. In this latest consultation ESMA addresses the transparency mandate for derivatives under Articles 8a and 11a of MiFIR.

Proposals

This consultation includes ESMA’s proposals:

  • On the new MiFIR transparency regime for exchange-traded derivatives (ETD) and over-the-counter (OTC) derivatives. It sets out the new scope of derivatives subject to transparency, it proposes to apply the new liquidity determination to pre-trade waivers and introduces amendments to post-trade transparency fields and flags.
  • On the new deferral regime for ETD and OTC derivatives, including the different size thresholds and deferral durations to be applied for post-trade transparency.
  • For amendments to provisions related to the conditions under which MiFIR trade transparency requirements are disapplied to transactions entered by a member of the European System of Central Banks.
  • To review Commission Delegated Regulation (EU) 2017/21942 (‘Package order RTS’) in particular taking into consideration the new scope and liquidity determination.
  • Deriving from ESMA’s new mandate to develop draft regulatory technical standards prescribing data quality requirements for prospective consolidate tape providers and data contributors, covering the OTC derivatives tape.

Next steps

The consultation closes on 3 July 2025.

ESMA expects to publish a final report and submit draft technical standards to the European Commission in Q4 2025.