The European Securities and Markets Authority (ESMA) has delayed the release of the systematic internaliser (SI) regime data for equity, equity-like instruments and bonds.
As part of MiFID II, investment firms dealing on their own account when conducting client orders over the counter on an organised, frequent systematic and substantial basis are required to conduct a mandatory systematic internalise regime.
The regulation states that investment firms must assess whether they are an SI in equity instruments, bonds, ETCs and SFPs or derivatives – this has to be done on a quarterly base.
When deciding if a SI regime in needed, the investment firm must compare the trading it undertakes on its own account and compare it with the total volume and number of transactions executed in the EU. If the firm exceeds the relative thresholds, it is deemed an SI and need to fulfil necessary obligations.
Following a request from market participants and on a voluntary basis, ESMA decided to collate the total volume and number of transactions executed in the EU. This will help films improve their SI regimes.
This delay has come due to a technical issue, but the regulator has stated it will release the regime data for equity, equity-like instruments and bonds by the end of next week.
Data needed for the SI calculations of derivatives and other instruments has been delayed to 2020, at the latest. As a result of this delay, SI-assessments for these asset classes will not need to be conducted until the data is published.
Earlier in the year, ESMA released advice to the European Union Institutions on initial coin offerings. Its advice surrounds the gaps and issues currently facing EU financial regulatory framework around these tokens.
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