MiFID2: ESMA and NCAs update work plan for opinions on pre-trade transparency waivers and position limits

ESMA and NCAs have issued a public statement on an updated work plan for issuing opinions on pre-trade transparency waivers and position limits under MiFID2 and MiFIR.

The work plan sets out the approach ESMA and NCAs intend to take to avoid processing bottlenecks and ensure the MiFID2/MiFIR waivers and position limits are available for use as of 3 January 2018. To that end:

• equity instrument waivers are being prioritised, with an intention that opinions be finalised by the end of 2017;
   
• non-equity instrument waivers pending an opinion are to be granted by an NCA subject to its own compliance assessment and certain conditions; and
   
• NCAs will publish commodity derivative position limits that enter into force on 3 January 2018, which will be modified in accordance with subsequently issued opinions.

The statement includes the assurance that market participants will be given sufficient lead-time where ESMA issues a non-compliant opinion that requires NCAs to amend their initial decision.