The European Securities and Markets Authority (ESMA) has published its final report on three key technical standards under the MiFIR Review. The package includes changes to the single volume cap mechanism, a new framework for Systematic Internalisers (SIs), and revised rules on circuit breakers and operational resilience.
One of the headline changes is the move from the current double volume cap (DVC) to a single volume cap (SVC). This will set a uniform EU-wide threshold of 7 per cent for the use of reference price and negotiated trade waivers, replacing the previous two-tier system with thresholds at 4 per cent per venue and 8 per cent EU-wide.
The shift also brings a significant reporting change: daily reporting of transparency data by trading venues and Approved Publication Arrangements (APAs) will be phased out. Instead, calculations will rely on transaction reporting data already collected under MiFIR, reducing the reporting burden on firms. The new framework is scheduled to apply from 29 September 2025.
SIs and circuit breakers
The report introduces an Implementing Technical Standard (ITS) aimed at harmonising how investment firms notify regulators of their intention to act as SIs. It sets out a standard format and content for notifications, clarifying procedural steps and improving consistency across the EU. The updated approach responds to calls from firms and regulators for more legal clarity in this area.
ESMA has also revised the technical standards around circuit breakers. The changes offer trading venues more detailed guidance on calibrating circuit breakers, including factors like volatility, instrument liquidity, and order book depth. The updated standards also set clearer requirements for disclosing circuit breaker parameters to both regulators and the public.
The changes tie in with the broader push for operational resilience under the Digital Operational Resilience Act (DORA), aiming to strengthen system stability during periods of extreme market stress.
The final report has now been submitted to the European Commission for endorsement. Once approved, the new rules will be directly applicable across the EU.
