EU Notice on Postponement of Open Access Provisions for Exchange-Traded Derivatives | Shearman & Sterling LLP

A notice of information has been published in the Official Journal of the European Union, postponing the entry into application of open access provisions for exchange-traded derivatives under the Markets in Financial Instruments Regulation until July 3, 2021.

MiFIR requires a trading venue to provide open and non-discriminatory access to a CCP so that a CCP can clear trades in transferable securities, money market instruments and ETDs concluded on a trading venue of their choice. There is a reciprocal requirement on CCPs to provide open and non-discriminatory access to a trading venue that wishes to clear financial instruments through a particular CCP. These provisions have been in force for over-the-counter products (i.e. those not traded on a regulated market) for some time. The European Securities and Markets Authority published a statement in June 2020 setting out the circumstances in which trading venues and CCPs may refuse requests for access, acknowledging the strain placed on trading venues and CCPs by COVID-19, which may impact their ability to deal with such requests.

However, MiFIR provided a transitional opt-out from the open access requirements for trading venues and CCPs in relation to ETDs, provided that certain criteria were met. Numerous trading venues and CCPs were granted the temporary exemption, which expires on July 3, 2020. Under the existing legislation, there is no further extension option. However, in light of current market volatility arising from COVID-19, and the related need for greater focus on business continuity, the EU has decided to extend the transitional period for trading venues and CCPs which already benefit from the temporary exemption.

View the EU’s notice of information.

View details of ESMA’s statement on open access requests for exchange-traded derivatives.

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