ESMA updates its Questions and Answers (Q&As) regarding multiple MiFID II and MiFIR topics and issues
News / Publications
16. October 2018

ESMA updates its Questions and Answers (Q&As) regarding multiple MiFID II and MiFIR topics and issues

During the last two weeks the European Securities and Markets Authority (ESMA) issued a set of revised Q&As on a number of different topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR). The updates cover the issues “data reporting”, “investor protection and intermediaries”, “commodity derivatives”, “market structures” and “transparency”. The objective of these Q&As is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR. Below we would like to provide you with an overview of the single changes.

On 26.09.2018 ESMA issued an update of its Q&As regarding data reporting. The new version of the Q&A document includes the following two new Q&As:

  • Q&A 15 on “FX Swaps reporting”: ESMA presents the reference data and transaction reporting scenarios in the case where an FX swap is reported as a single stand-alone financial instrument under Article 26 and Article 27 of MiFIR. This specific Q&A should be implemented within 6 months after its publication;
  • Q&A 16 on “Interest Rate Swaps reporting”: this Q&A includes reference data and transaction reporting scenarios involving Interest Rate Swaps that are to be reported under Article 26 and Article 27 of MiFIR. Given its impact on the ISIN creation process, this Q&A is assumed to apply 6 months after the publication date.


The updated Q&As also include an amendment to the existing Q&A 1 on total issued nominal amount (MiFIR Q&A Section 11. Field 14 and Field 17): when reporting the nominal amounts of issued bonds and other forms of debt, trading venues should now also take into account tap issuances and buy-backs.

These changes were followed by an update of the Q&As on commodity derivatives on 02.10.2018. Here the alterations affect the following topics:

  • Position limits and reporting: two new Q&As clarify the treatment of legacy positions on OTFs and specifie further the types of firms that have to submit weekly Commitment of Trader (CoT) reports;
  • Ancillary activity: Q&As number 3 and 10 were updated, and Q&A 13 was removed.


With respect to the topic “investor protection and intermediaries” ESMA also ramped up its existing set of Q&As. The new version was published on 03.10.2018 and contains new questions and answers on:

  • Best execution: reporting for firms using a venue’s RFQ system to agree a trade;
  • Investment advice on an independent basis: the new Q&A Nr. 2 elaborates on the cases when investment firms can use a “look-through” approach.


In order to properly wrap up this round of updates, the authority also introduced additions to the Q&As regarding the issues “market structures” and “transparency”. The updated Q&As were published on 04.10.2018 and provide clarification on a number of topics, such as:

  • Classification of derivatives on derivatives for transparency purposes;
  • Registration of a segment of an MTF as an SME growth market;
  • Default liquidity status of bonds
  • Scope of the pre-trade transparency waiver provided under Article 9(1)(c) of MiFIR;
  • Maker Taker schemes.


In accordance with this, we have already brought our MiFID II & MiFIR Index up to date where we present you with an overview of all relevant documents regarding the topic of MiFID II and MiFIR. In the Index we have matched the already published regulatory and implementing technical standards of the European Commission (level II), as well as ESMA guidelines and Q&As (level III) with the respective articles from the MiFID II and MiFIR legal texts.


You can download the MiFID Index II here.