NSA response to European Commission consultation on Building a proportionate regulatory environment to support SME listing

NSA response to ESMA Consultation Paper on the trading obligation for derivatives under MiFIR

The NSA notes and appreciates that ESMA has listed to the feedback provided from several stakeholders regarding some of the questions raised in the Discussion Paper (DP).

 In particular, the NSA would like to express support to the decision by ESMA not to include the IRS 10 yr SEK in the TO. As mentioned in our reply to the DP these contracts are not liquid and 99 % OTC-traded. We fully agree to ESMA’s solution that contracts denominated in a particular currency should only be considered to be subject to the CP where at least 3 tenor points are considered to be liquid.

 The NSA also appreciate that ESMA has put an effort to improve the data and methodology from the discussion paper to this consultation. For example, we agree to the change to effective date instead of the execution date.

 However, we would like to raise some key points elaborated in our response document.

 NSA__reply_esma_cp_mifid_to_002.pdf

NSA response to the proposal from the EC to amend MiFID 2 Delegated Regulation on SI definition

On 20 June 2017, the Commission published a proposal with a 4 week consultation period to amend Delegated Regulation (EU) 2017/565 with the purpose to clarify the precise scope of the definition of "systematic internaliser" to ensure uniform application of this term and avoid circumvention.  The Commission’s focus is to restrain the increasing OTC trade in equities within the so-called Brokers Crossing Networks (BCN), which in their essence are OTC dark pools.

However, the proposal is not targeted towards this concrete challenge; it is much wider in scope, which may lead to unintended consequences i.e. less efficient markets for all instruments.

In order to accommodate a more targeted approach, the NSA has provided a concrete proposal for amendment, which can be found on page 3.

NSA_reply_on_Commission_proposal_on_the_change_of_level_2_SI_network.pdf

NSA responded to the ESA review

Today NSA responded to the ESA review,
see the response here.