MiFID2/MiFIR: Level 2 measures published in Official Journal

05/04/2017 Clifford Chance

Level 2 measures under MiFID2/MiFIR have been published in the Official Journal.

Three Delegated Acts have been published:

Commission Delegated Regulation (EU) 2017/567 supplementing MiFIR with regard to definitions, transparency, portfolio compression and supervisory measures on product intervention and positions;
Commission Delegated Regulation (EU) 2017/565 supplementing MiFID2 as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of MiFID2; and
Commission Delegated Directive (EU) 2017/593 supplementing MiFID2 with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits.

All three Delegated Acts will enter into force on 20 April 2017.

The following regulatory technical standards (RTS) under MiFID2 have been published:

RTS 6 on the organisational requirements of investment firms engaged in algorithmic trading (Commission Delegated Regulation (EU) 2017/589);
RTS 7 on organisational requirements of trading venues (Commission Delegated Regulation (EU) 2017/584);
RTS 8 on the requirements on market making agreements and schemes (Commission Delegated Regulation (EU) 2017/578);
RTS 9 on the ratio of unexecuted orders to transactions in order to prevent disorderly trading conditions (Commission Delegated Regulation (EU) 2017/566);
RTS 10 on requirements to ensure fair and non-discriminatory co-location services and fee structures (Commission Delegated Regulation (EU) 2017/573);
RTS 11 on the tick size regime for shares, depositary receipts and exchange-traded funds (Commission Delegated Regulation (EU) 2017/588);
RTS 12 on the determination of a material market in terms of liquidity in relation to notifications of a temporary halt in trading (Commission Delegated Regulation (EU) 2017/570);
RTS 13 on the authorisation, organisational requirements and the publication of transactions for data reporting services providers (Commission Delegated Regulation (EU) 2017/571);
RTS 17 on the admission of financial instruments to trading on regulated markets (Commission Delegated Regulation (EU) 2017/568);
RTS 18 on the suspension and removal of financial instruments from trading (Commission Delegated Regulation (EU) 2017/569);
RTS 20 on the criteria to establish when an activity is considered to be ancillary to the main business (Commission Delegated Regulation (EU) 2017/592);
RTS 21 on the application of position limits to commodity derivatives (Commission Delegated Regulation (EU) 2017/591);
RTS 25 on the level of accuracy of business clocks (Commission Delegated Regulation (EU) 2017/574);
RTS 27 on the data to be published by execution venues on the quality of execution of transactions (Commission Delegated Regulation (EU) 2017/575);
RTS 28 on the annual publication by investment firms of information on the identity of execution venues and on the quality of execution (Commission Delegated Regulation (EU) 2017/576);
RTS on exchange of information between competent authorities when cooperating in supervisory activities, on-the-spot verifications and investigations (Commission Delegated Regulation (EU) 2017/586).

The following RTS under MiFIR have also been published:

RTS 1 on transparency requirements for trading venues and investment firms in respect of shares, depositary receipts, exchange-traded funds, certificates and other similar financial instruments and on transaction execution obligations in respect of certain shares on a trading venue or by a systematic internaliser (Commission Delegated Regulation (EU) 2017/587);
RTS 2 on transparency requirements for trading venues and investment firms in respect of bonds, structured finance products, emission allowances and derivatives (Commission Delegated Regulation (EU) 2017/583);
RTS 3 on the volume cap mechanism and the provision of information for the purposes of transparency and other calculations (Commission Delegated Regulation (EU) 2017/577);
RTS 5 on the direct, substantial and foreseeable effect of derivative contracts within the Union and the prevention of the evasion of rules and obligations (Commission Delegated Regulation (EU) 2017/579);
RTS 14 on the specification of the offering of pre- and post-trade data and the level of disaggregation of data (Commission Delegated Regulation (EU) 2017/572);
RTS 15 on clearing access in respect of trading venues and central counterparties (Commission Delegated Regulation (EU) 2017/581);
RTS 22 on the reporting of transactions to competent authorities (Commission Delegated Regulation (EU) 2017/590);
RTS 23 on the data standards and formats for financial instrument reference data and technical measures in relation to arrangements to be made by the European Securities and Markets Authority and competent authorities (Commission Delegated Regulation (EU) 2017/585);
RTS 24 for the maintenance of relevant data relating to orders in financial instruments (Commission Delegated Regulation (EU) 2017/580); and
RTS 26 specifying the obligation to clear derivatives traded on regulated markets and timing of acceptance for clearing (Commission Delegated Regulation (EU) 2017/582).

The RTS will enter into force on 20 April 2017.