The European Securities and Markets Authority (ESMA) has detailed the timeline for the new regime on post-trade transparency of OTC transactions, introduced by the MiFIR review. ESMA shares in a public statement that this regime establishes Designated Publishing Entities (DPEs), tasked with making OTC transaction details public.
The MiFIR review authorises National Competent Authorities (NCAs) to designate investment firms as DPEs, who will then publish transaction details through approved publication arrangements (APAs). ESMA must establish a public register of DPEs, specifying their identities and the financial instruments they cover, by 29 September.
To ensure a smooth transition, ESMA and NCAs agreed on a phased approach. ESMA will begin publishing the DPE register on 29 September, and the new regime will become fully operational on 3 February 2025. From this date, DPEs must disclose transaction details via an APA, replacing the current reliance on Systematic Internalisers (SIs).
Becoming DPEs
Investment firms aiming to become DPEs should register with their NCAs, providing necessary details such as Legal Entity Identifiers (LEIs) and the financial instruments they intend to cover. NCAs will then forward this information to ESMA for inclusion in the public register. Initially, the register will be available in XLSX format on ESMA’s website, with regular updates. By the end of 2025, the register will be integrated into ESMA’s IT systems, ensuring automatic updates and easier access.
This new regime aims to enhance transparency in OTC transactions, aligning with the MiFIR review’s goals. Until the new system is operational, the current regime relying on SIs will remain in effect. ESMA will continue to provide updates and guidance to facilitate this transition.