ESMA delays MiFID II systematic internaliser regime

ESMA has delayed the SI regime and stated assessments should be made by 1 September 2018.

The European Securities and Markets Authority (ESMA) has stated buy-side firms should carry out systematic internaliser (SI) assessments by 1 September 2018. 

The latest Q&A response from ESMA explained a lack of data would mean the SI regime could not be fully applicable until there is at least 6 months of data available. 

“ESMA will publish the necessary data (EU wide data) for the first time by 1 August 2018 covering a period from 3 January 2018 to 30 June 2018,” the report said. 

Investment firms will then have to perform their first assessment and comply with systematic internaliser obligations by 1 September 2018.

The new timeline will also apply to instruments which are illiquid.

“In order to ensure a consistent assessment and to ensure that all investment firms are treated in the same manner, for all instruments, irrespective of their liquidity status, the assessment should therefore be performed by 1 September 2018,” ESMA said. 

ESMA added that investment firms should be able to opt in to the SI regime from 3 January “as a means to comply with the trading obligation for shares.”

Although companies should expect ESMA’s EU-wide data to be first published by 1 August 2018.