In the latest publication under the MiFIR Review, ESMA has issued its final report on bond transparency and reasonable commercial basis.
Changes have been made to Level 2 provisions on transparency requirements for bonds, structured finance products and emission allowances following the MiFIR Review Consultation Package conducted in May. Feedback was positive, the authority shared, and as such “ESMA has largely maintained its approach”.
New data analysis has been provided on the bond deferral regime, ensuring that it is fit for purpose before the consolidated tape go-live – expected to be at the end of next year.
The regulatory technical standards (RTS) are designed to make market data accessible to all market participants in a fair and nondiscriminatory way. Pre- and post-trade data must be available on a reasonable commercial basis (RCB), with market data fees based on production and dissemination costs with “a reasonable margin”.
Fulfilling these goals is crucial for users to see trading opportunities and activities and for the overall implementation of the MiFIR Review, ESMA stated.
The European Commission will decide whether the RTS will be endorsed within three months.
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