ESMA final report on derivatives transparency, package orders and the EU derivatives CTP final piece in the EU MiFIR Review puzzle

ESMA has published its Final Report on transparency for derivatives, package orders and input/output data for the EU OTC derivatives consolidated tape. This represents the final set of changes to technical standards following the EU MiFIR Review (other than changes to transaction reporting requirements which are subject to a more comprehensive review). 

In response to feedback, ESMA has made some changes to the post-trade deferrals regime consulted on. The changes include greater granularity in the way deferral buckets are set for equity ETDs (which, in turn, allows for more nuanced deferrals), changes to the liquidity assessment for single-name and index credit default swaps and changes to the deferral buckets and periods for some of these products (enabling smaller trades to benefit from potentially longer deferrals than had been proposed in the CP), and a reduction in the number of post-trade reports regarding OTC derivatives trades that benefit from volume masking. Notably, ESMA has not made specific provision for forward rate agreements and basis swaps, indicating that there is a political desire to exclude these from the transparency regime altogether (although this is subject to confirmation and would require legislative changes). 

ESMA has also clarified that Exchange Traded Notes and Commodities will not be included in the EU bond CTP which, given that these instruments are not included in the EU equity CTP either, suggests that they will not be included in either tape at this stage (aligning with the current UK position). 

ESMA has proposed that all derivatives related changes to the RTS should apply from 1 March 2027. ESMA has also suggested that application of the new delegated act on identifiers for OTC derivatives for transparency purposes (which is set to apply from 1 September 2026) should be delayed until the same date. 

Read our note here for more detail on ESMA's final report.