The European Securities and Markets Authority (ESMA) has published new data bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). The data covers the second quarter of 2019.
ESMA unveils new data every quarter to help people buying, selling or otherwise participating in the market to know whether a bond should be seen as liquid or not.
For this period, there were 594 liquid bonds subject to MiFID II’s transparency requirements. These rules snapped into action on January 3 2018. Post-trade the legislation requires real-time publication of the price and quantity of trades in liquid bonds. The financial watchdog bases its liquidity assessment for bonds on a quarterly assessment of quantitative liquidity criteria. The criteria includes the daily average trading activity and percentage of days traded per quarter.
ESMA notes that while this new dataset may assist companies in their compliance efforts, it may be subject to change as the financial authority makes updates.
In other MiFID II news, ESMA recently gave its thumbs up to authorities in Bulgaria, Denmark and Croatia after they launched new product intervention measures. These measures were seen as “at least as stringent as ESMA’s measures.”
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