ESMA_QA_1543
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1543
Regulatory Context
Regulation : MIF2
Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Level 2 Regulation: No information available
Level 3 Regulation: No information available
Topic: Position reporting
Subject Matter: Position reporting
Question
Submission Date: 23 September 2022
In cases where an OTC contract is economically equivalent to more than one ETD contract traded on an EU trading venue and where those ETD contracts are not falling under the coordination procedure set out in Article 57(6) of MiFID II, to which NCA should the reporting of the EEOTC contracts be addressed?
ESMA Answer
Answer Date: 23-09-2022
[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 4.21] In cases where an OTC contract is economically equivalent to more than one ETD contract traded on a trading venue in the EU and where those ETD contracts do not fall under the coordination procedure established in Article 57(6) of MiFID II, positions in the EEOTC contract should be reported to the NCA of the trading venues where the ETD contract with the largest volume of trading is traded. For aggregation purposes, in order to calculate “net positions” according to Article 57(1) of MIFID II and Article 3 of RTS 21a, the EEOTC contract should be considered only once and be aggregated only once with the ETD contract with the largest volume of trading.
This document was automatically extracted from the ESMA EMIR Q&A database.