MiFID2/MiFIR: ESMA clarifies concept of 'traded on a trading venue

The European Securities and Markets Authority (ESMA) has published an opinion clarifying the concept of 'traded on a trading venue' (TOTV) in respect of over-the-counter (OTC) derivatives under MiFID2 and MiFIR.

The concept of TOTV is particularly relevant for:

• pre-trade and post-trade transparency requirements on market operators and investments firms operating a trading venue, and for investment firms (including systematic internalisers) operating OTC; and
• transaction reporting obligations.

The opinion sets out which transactions in derivatives concluded outside of trading venues are subject to transaction reporting and transparency requirements, and specifies that only OTC-derivatives sharing the same reference data details as the derivatives traded on a trading venue should be considered to be TOTV, and therefore subject to the transparency and reporting requirements of MiFIR.