FIA EPTA response to the European Securities and Markets Authority’s Discussion Paper on the trading obligation for derivatives under MiFIR

21 November 2016

FIA EPTA members have consistently supported the leading objective of the 2009 G20 Pittsburgh commitments and the subsequent EU derivatives markets reforms, which aim to ensure that trading in standardised OTC derivatives takes place on exchanges or electronic trading platforms where possible. We therefore welcome ESMA’s Discussion Paper on the proposed trading obligation for the select classes of OTC derivatives and we encourage ESMA to complete work on the determination of the trading obligation for derivatives without further delay.

 FIA EPTA members support a broad application of the trading obligation and we encourage its extension to different classes of standardised OTC contracts in the future as appropriate. In this context, we encourage ESMA to conduct regular assessments of those classes of OTC derivative contracts that can become subject to the clearing obligation. We would also encourage ESMA to use its to initiate the trading obligation procedure independently of the clearing obligation if deemed necessary in the future.

Additionally, FIA EPTA would like to reiterate that broad and non-discriminatory access to trading venues is crucial to the success of the trading obligation. The same is true for ensuring consistency between the trading obligation that will be applicable in the EU to the similar obligations in other major jurisdictions, notably the US. 

  • MiFIR