On 10 October 2025, the European Securities and Markets Authority (ESMA) issued its second statement concerning the transition for the application of the MiFID II/MiFIR review.

ESMA issued its first statement on the MiFID II/MiFIR review on 27 March 2024 and the statement complements an interpretative notice issued by the European Commission (Commission).

In its second statement ESMA states:

  • Notwithstanding potential changes in the timing for the adoption of delegated and implementing acts by the Commission, market participants are expected to comply with the provisions as amended by the MiFID II/MiFIR review, unless otherwise specified.
  • As a general rule, the revised MiFID II provisions apply when the relevant changes are transposed into national law.

ESMA also provides in its second statement practical guidance to markets participants on:

  • Commodity derivatives, derivatives on emission allowances and systematic internalisers:
    • Position management controls – In December 2024, ESMA submitted to the Commission the amending draft Regulatory Technical Standards (RTS) on position management controls. The amendments to the RTS on position management controls are a direct consequence of the change to the Level 1 text. ESMA expects trading venues to take into account the position management controls in relation to derivatives of emission allowances included in the amending draft RTS until the current RTS is revised.
    • Position reporting – In December 2024, ESMA submitted an amendment to Implementing Technical Standard (ITS) 4 to the Commission to implement the changes to Article 58 MiFID. ESMA states that the relevant documentation containing technical specifications to be used for reporting purposes by trading venues were published on 25 September 2025. ESMA will communicate separately on the test phase for reporting as per the new requirements. The planned go live of the amended reporting and register is scheduled for 1 April 2026. As per the amended Level 1 text, investment firms are no longer required to report positions in emission allowances under Annex II of ITS 4.
    • Systematic internaliser (SI) regime – With the start of the Designated Publishing Entity regime, the mandatory SI regime based on a quantitative test is no longer applicable, and investment firms are relieved from performing that test. Investment firms meeting the qualitative requirements for equity instruments or opting into the regime will need to register as an SI. When notifying information to their respective Member State competent authorities, those investment firms are invited to base such notification on the template in the draft ITS on the content and format of the SI notification, pending adoption by the Commission and the publication of the final ITS in the Official Journal of the EU (OJ).
  • Single volume cap mechanism (VCM) in MiFIR as amended by the MiFIR review:
    • The single VCM – Has replaced the double VCM and has become operational with the first calculation results published on 9 October 2025.
  • Revised transparency rules for bonds, structured finance products, emission allowances, and equity instruments:
    • Application of the revised rules on equity and non-equity transparency – The Commission Delegated Regulation amending RTS 1 and RTS 2 stipulates that most of the revised transparency requirements in respect of bonds, structured finance products, emission allowances, and equity instruments apply from 2 March 2026. However, as regards RTS 1, 20 days after the amending Commission Delegated Regulation has been published in the OJ, two main provisions start applying: (i) Article 13 – give-up and give in transactions will be excluded from the post-trade transparency reporting when executed off-venue and (ii) Articles 11a and 11b – SIs will have to comply with new quoting obligations.  In this regard, ESMA has published an announcement on the standard market size for liquid instruments on the basis of the amended Table 3 and the new Table 3a of Annex II of RTS 1. These values will determine the new quoting obligation for SIs according to Articles 11a and 11b of RTS 1. While these amendments are still to be published in the OJ, market participants are invited to anticipate the application of the MiFIR provisions related to the transparency requirements for these instruments as of 2 March 2026.
    • Discontinuation of FITRS and DVCAP reporting flows – The last reporting day for volume cap data will be 31 December 2025. The last reporting day for FITRS quantitative data on equity instruments, bonds, structured finance products and emission allowances will be 31 March 2026. The submission of FITRS reference data will remain unchanged in the interim period.