MiFIR—trading obligation for derivatives
MiFIR—trading obligation for derivatives

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • MiFIR—trading obligation for derivatives
  • MiFIR trading obligation—regulatory context
  • What is the trading obligation?
  • FC+s and NFC+s—EMIR REFIT
  • Application of trading obligation to third-country entities
  • EMIR clearing obligation
  • Which derivatives are subject to the trading obligation?
  • Packages
  • Regulated trading venues
  • more

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see Practice Notes: Brexit—impact on finance transactions—Key issues for derivatives transactions, Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs and The impact of Brexit on the MiFID II regime.

MiFIR trading obligation—regulatory context

The Markets in Financial Instruments Directive 2014/65/EU (MiFID II) and the Markets in Financial Instruments Regulation (EU) 600/2014 (MiFIR) were published in the Official Journal of the EU on 12 June 2014 and entered into force 20 days later on 2 July 2014. In accordance with Regulation (EU) 2016/1033, the majority of MiFID II and MiFIR provisions applied from 3 January 2018.

MiFID II and MiFIR together replace the Markets in Financial Instruments Directive 2004/39/EC (MiFID).

Regulatory technical standards (RTS) on criteria for determining whether derivatives subject to the clearing obligation under the European Market Infrastructure Regulation (EU) 648/2012 (EMIR) should be subject to the trading obligation under MiFIR are set out in Commission Delegated Regulation (EU) 2016/2020.

RTS on the direct, substantial and foreseeable effect of derivative contracts within the European Union (EU) and the prevention of the evasion of rules and obligations are set out in Commission Delegated Regulation (EU) 2017/579.

RTS on the trading obligation for