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ESMA consults on trading obligation for derivatives

11 November 2016

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The European Securities and Markets Authority published a discussion paper on Sept. 20 regarding the trading obligation under the Markets in Financial Instruments Regulation. The trading obligation is intended to move over-the-counter trading in liquid derivatives onto organized platforms. The paper discusses the process for determining which derivatives should be traded on-venue. The trading obligation under MiFIR is closely linked to the clearing obligation under the European Market Infrastructure Regulation. Once a class of derivatives needs to be centrally cleared under EMIR, ESMA must determine whether these derivatives should be traded on-venue. The consultation closes on Nov. 21.

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