ESMA_QA_1958

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1958

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Regulatory Context

Regulation : SSR

Level 1 Regulation: Short Selling Regulation (SSR) Regulation (EU) No 236/2012

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Exemptions: market makers and primary operations

Subject Matter: Equivalence decision for third countries

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Question

Submission Date: 29 January 2013

In order for any non-EEA entity to be able to use the market making activities exemption as defined in the Regulation, the market in its home jurisdiction should be subject to a legal and supervisory regime which is equivalent to the MiFID, MAD and Transparency directive and should be declared “equivalent”. Has such a determination of “equivalence” already taken place? Will non-EEA entities be able to use the exemption for their market making activities under the Regulation in time for 1 November, 2012?

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ESMA Answer

Answer Date: 29-01-2013

[ESMA70-145-408 SSR Q&A, Q&A 12.1] According to Article 17(2) of the Regulation, the legal and supervisory framework of a third country is considered equivalent when the European Commission has adopted a decision to that effect. The Commission has not issued any equivalence decision; thus, at this stage, no third country entity can claim the use of the exemption in relation to a third country market.

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This document was automatically extracted from the ESMA EMIR Q&A database.