Draft amendment regulation to amend Commission Delegated Regulation (EU) 2017/567
The latest legislative amendments to MiFIR were introduced by Regulation (EU) No 2024/791 ("MiFIR review"). The MiFIR review removed barriers to the creation of three consolidated tape providers (for bonds, shares and ETFs and over-the-counter derivatives) and enhanced market transparency and competitiveness of EU markets in the global landscape. The parallel MiFID II amendment (Directive (EU) 2024/790) contains complementary provisions on consolidated tapes and transparency.
As it is necessary to reflect and implement the amendments to MiFIR and MiFID II in Commission Delegated Regulation (EU) 2017/567 with regard to definitions, transparency, portfolio compression and supervisory measures on product intervention and positions, the European Commission has published on 8 August 2025, a draft Commission Delegated Regulation which shall amend the Delegated Regulation (EU) 2017/567 by:
- Replacing the 'free float' criterion with the 'market capitalisation' criterion (with a EUR 100 million threshold for shares) in determining what constitutes a 'liquid market' and clarifying other issues regarding liquidity assessments for equity instruments.
- Deleting provisions that clarify what constitutes a “reasonable commercial basis” for trading venues and systematic internalisers, following changes to Article 13 of MiFIR and the introduction of a new empowerment for ESMA to develop regulatory technical standards on this concept.
- Deleting the provision specifying the size specific to financial instruments for systematic internalisers in respect of non-equity instruments, following the deletion of pre-trade transparency requirements for systematic internalisers in respect of non-equity instruments.
- Specifying what constitutes post-trade risk reduction ("PTRR") services for the purposes of the exemption in Article 31(1) MiFIR, which expands beyond portfolio compression services to exempt PTRR services from transparency requirements, trading obligations, and best execution requirements. The regulation specifies that PTRR services include portfolio compression, rebalancing, and basis risk optimisation.
- Deleting publication requirements for portfolio compression services, following the deletion of the obligation in Article 31 for investment firms and market operators to make public through an APA the volumes and timing of transactions subject to portfolio compressions.
Adoption by the European Commission is planned for the fourth quarter of 2025. The provisions relating to liquid markets for equity instruments will apply from 2 March 2026, while other provisions will have different application dates as specified in the regulation.
ESMA’s Second Public Statement
On 10 October 2025, ESMA issued its second public statement providing practical guidance to market participants on the transition for applying certain provisions following the MiFID II/MiFIR review. The statement addresses key areas including commodity derivatives and emission allowances position management, the new Systematic Internaliser regime, the single volume cap mechanism and revised transparency rules for bonds, structured finance products, emission allowances and equity instruments.
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