On January 2 and 3, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin) and the UK Financial Conduct Authority (FCA) granted, respectively, last-minute delays to Europe’s largest futures exchanges in implementing part of the Markets in Financial Instruments Regulation (MiFIR).
Under the “open access” requirements of MiFIR, a trading venue has the right to non-discriminatory access to a central counterparty (CCP) in the European Union (EU), and vice versa. However, a CCP or trading venue may apply to its national competent authority for a transitional arrangement to be agreed in relation to exchange-traded derivatives so that the open access rules of MiFIR would not apply to it until July 3, 2020 (Transitional Arrangement).
BaFin received an application from Eurex Clearing AG (Eurex), and the FCA received applications from ICE Futures Europe and the London Metal Exchange (LME), requesting that Transitional Arrangements be approved by both respective national competent authorities.
In both of the statements by BaFin and by the FCA, it was confirmed that BaFin and the FCA have assessed the open access requirements and subsequently approved the applications they received from the respective trading venues. Consequently, ICE Futures Europe, LME and Eurex will not be required to consider “open access” requests made under MiFIR, insofar as they relate to exchange-traded derivatives, until the expiry of their respective Transitional Arrangements on July 3, 2020.
A copy of the FCA’s statement is available here.