E.U. – ESMA Pre-Trade Transparency

E.U. – ESMA Pre-Trade Transparency

On 3 June 2019, ESMA published a briefing on commodity derivatives.

  • Issued supervisory briefing to ensure compliance with MiFIR pre-trade transparency.
  • Developed after ESMA became aware that the provisions were not implemented in a consistent manner across EU, aims to increase supervisory convergence among NCAs.
  • And to provide common timetable for the enforcement of the commodity derivatives pre-trade transparency regime, with the objective of ensuring a level playing field.
  • Clarifies NCAs must ensure trading venues don't operate trading functionalities which allow the formalization of negotiated trades in the absence of any compliant waiver.

Three-Step Timetable

  • To achieve the objective the briefing sets the following common three-step timetable.
  • NCAs must gather information on the plans of each relevant trading venue to comply with the pre-trade transparency requirements, and ESMA should assess those plans.
  • NCAs should make sure the trading venues either operate under compliant pre-trade waiver or are pre-trade transparent; this should be completed by the end of 2019.
  • NCAs must take supervisory measures in case of non-compliance, from Jan. 1, 2020.


  • ESMA to closely cooperate with NCAs and regularly monitor the application of briefing.
  • Will review progress and measures undertaken six months after beginning of 3rd step.