EU authorities issue 11th hour guidance on timing for the application of MiFIR review changes

The European Commission has published a draft interpretative notice to provide clarity to market participants on the transitional provision of the Markets in Financial Instruments Regulation (MiFIR) review.Following much uncertainty in the industry over the timing of the application of the EU MiFIR Review changes – and with less than 24 hours to go before the revisions to MiFIR are due to apply – the European Commission and ESMA have published guidance on the timing for application of some of the revised rules.

The European Commission has clarified that those EU MiFIR provisions that rely on (new or amended) delegated regulations to become fully operational will continue to apply as they stand today – i.e. the position pre-EU MiFIR Review position will apply – until the relevant delegated regulations have been produced / amended and become applicable. The implication is, therefore, that those provisions that do not depend on delegated acts can apply from 28 March 2024 will apply from that date. As indicated by the accompanying ESMA statement, however, there is some nuance around that position (e.g. with respect to transaction reporting and the Designated Publishing Entity regime). 

Firms urgently need to consider this new guidance against the various changes being introduced by the EU MiFIR Review and (in the absence of any express regulatory forbearance) ensure that they are ready to “go live” with those changes that can – and will – apply from 28 March 2024. 

Read our note on the Knowledge Portal here which includes a table summarising the Commission and ESMA guidance.