ESMA Clarifies OTC Derivatives Reporting and Tick-Size…
By Rick Steves
AI summary of the source article
ESMA has updated its post-trade transparency manual to clarify OTC derivatives identification and consolidate tick-size Q&As. The guidance on OTC reference data remains in draft form pending the entry into force of related technical standards.
Why it matters
The guidance has the stated aim of "improving consistency in information reported to and published through the consolidated tape" and is part of an effort to "reduce fragmentation in access to post-trade data".
Key facts
- ESMA updated its post-trade transparency manual with guidance on identifying OTC derivatives and applying the tick-size regime.
- The OTC derivatives reference-data guidance remains draft until related technical standards, including RTS 2, take effect.
- The manual incorporates tick-size Q&As and outlines circumstances in which trading venues and national competent authorities may intervene.
Source excerpt · FinanceFeeds
The updated manual adds guidance for identifying OTC derivatives and consolidates tick-size Q&As, while one section remains draft pending technical standards. ESMA has updated its post-trade transparency manual with guidance on identifying over-the-counter derivatives subject to transparency requirements and recommendations for applying the tick-size regime. The update addresses two separate imple…