ESMA to halt publication of MiFID II markets data in no-deal Brexit
06 February 2019 Paris
Image: Shutterstock
Under a no-deal Brexit, the European Securities and Markets Authority (ESMA) has clarified it will receive and process no new UK-related data from 30 March 2019, the day after the UK is due to leave the EU.
ESMA published the statement on the use of UK data in ESMA databases in relation to performance of the second Markets in Financial Instruments Directive (MiFID II) calculations under a no-deal Brexit.
ESMA said it is issuing this statement in relation to the impact on ESMA’s databases in a no-deal scenario, whereby the UK’s Financial Conduct Authority will cease sending data to ESMA and will no longer have access to ESMA’s IT applications and databases.
Alex Dorfmann, senior product manager at SIX, said: “The current discussion about the handling of MiFID II data post-Brexit shows how intertwined, complex and fragmented regulatory data is.”
ESMA has set out details for certain areas in case of a ‘no-deal’ Brexit including reference data, relevant competent authorities and transparency calculations for equity instruments, as well as double volume cap data.
In a statement, ESMA said: “ESMA is aware that there currently remains a high level of uncertainty as to the final timing and conditions of Brexit. Should these change, ESMA will adjust its approach for its IT applications and databases and will inform the public of this as soon as possible.”
Dorfmann added: “In the case of MiFID II specifically, many firms have already started work on the automation of sourcing, analysis, aggregation and distribution of data, content and information to ensure the efficient implementation of compliance rules.”
“The discussion also shows that financial firms are still faced with the sizable challenge of how to better cope with this intense period of regulatory rules, changes and updates. It highlights the need for firms to work closely with data providers so that data and respective analytics are fully integrated into business decisions. This ensures a forward-looking view which takes into account impacts on product lines, distribution channels and business opportunities.
Christian Voigt of Fidessa, commented: “ESMA’s announcement is a sensible way to deal with an extraordinary situation. The period immediately after a no-deal Brexit will be challenging for all market participants. Halting updates to reference data for a limited time eliminates one possible source of transition issues.”
ESMA published the statement on the use of UK data in ESMA databases in relation to performance of the second Markets in Financial Instruments Directive (MiFID II) calculations under a no-deal Brexit.
ESMA said it is issuing this statement in relation to the impact on ESMA’s databases in a no-deal scenario, whereby the UK’s Financial Conduct Authority will cease sending data to ESMA and will no longer have access to ESMA’s IT applications and databases.
Alex Dorfmann, senior product manager at SIX, said: “The current discussion about the handling of MiFID II data post-Brexit shows how intertwined, complex and fragmented regulatory data is.”
ESMA has set out details for certain areas in case of a ‘no-deal’ Brexit including reference data, relevant competent authorities and transparency calculations for equity instruments, as well as double volume cap data.
In a statement, ESMA said: “ESMA is aware that there currently remains a high level of uncertainty as to the final timing and conditions of Brexit. Should these change, ESMA will adjust its approach for its IT applications and databases and will inform the public of this as soon as possible.”
Dorfmann added: “In the case of MiFID II specifically, many firms have already started work on the automation of sourcing, analysis, aggregation and distribution of data, content and information to ensure the efficient implementation of compliance rules.”
“The discussion also shows that financial firms are still faced with the sizable challenge of how to better cope with this intense period of regulatory rules, changes and updates. It highlights the need for firms to work closely with data providers so that data and respective analytics are fully integrated into business decisions. This ensures a forward-looking view which takes into account impacts on product lines, distribution channels and business opportunities.
Christian Voigt of Fidessa, commented: “ESMA’s announcement is a sensible way to deal with an extraordinary situation. The period immediately after a no-deal Brexit will be challenging for all market participants. Halting updates to reference data for a limited time eliminates one possible source of transition issues.”
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