The European Securities and Markets Authority has released
its annual transparency calculations for equity and equity-like instruments in
the European Union. These calculations will inform market transparency
requirements over the coming year.
The release follows ESMA efforts to reshape how derivatives
trades are reported and displayed, which affects
CFD brokers that hedge through EU venues. The authority published final
MiFIR standards introducing fixed transparency thresholds, new post-trade
reporting fields, and revised timing rules.
The package also lays the groundwork for a pan‑EU
OTC derivatives “consolidated
tape” in 2027.
Brokers will need to adapt systems for trade reporting, identifiers, and
deferral logic, even if retail CFDs remain unchanged.
Equity Rules Lead to Derivatives Consolidation
The assessments cover liquidity, the identification of the
most relevant market, average transaction values, standard market sizes, and
the average number of daily transactions. The results are intended to guide
pre-trade and post-trade thresholds and determine tick-size regimes.
Market participants are encouraged to monitor the
calculations regularly. This includes estimates for newly traded instruments
and updated figures after the first weeks of trading. The full list of
instruments and related data is available through ESMA’s FITRS and the Register
web interface.
ESMA also reminded firms that the revised rules on
transparency for equity and equity-like instruments will take effect from 2
March 2026. The calculations published this year will remain applicable until
the next annual update.
Looking ahead, ESMA is also moving to consolidate post-trade
derivatives data across the EU, another measure aimed at improving transparency
and market efficiency.
CFD Brokers Eye ESMA Data Feed
ESMA has opened applications for a Consolidated Tape
Provider to aggregate post-trade
data for over-the-counter derivatives across the EU. The service will
package data from trading venues and other contributors into a single
electronic feed.
While aimed at all market participants, CFD brokers will be
key users as they comply with upcoming transparency rules. The winning provider
will operate under ESMA supervision for five years, with final selection
expected by July 2026.
The feed is intended to support market efficiency and align
with ESMA’s 2027 derivatives transparency reforms.
This article was written by Tareq Sikder at www.financemagnates.com.
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