On April 7, ISDA, the Association for Financial Markets in Europe (AFME), the International Capital Market Association (ICMA) and the European Banking Federation (EBF) published a paper on proposals relating to post-trade transparency (PTT) under the Markets in Financial Instruments Regulation (MIFIR) contained in the European Commission’s (EC) Market Integration and Supervisions Package.

The paper supports the EC’s proposal to remove forward rate agreements and basis swaps from the scope of public transparency due to their illiquid nature and provides supporting arguments for the proposal. The paper also supports the existing proposal to disapply PTT requirements under MIFIR for over-the-counter derivatives concluded on certain third-country trading venues, effectively superseding an existing European Securities and Markets Authority opinion that currently provides for this. However, the paper urges the EC and co-legislators to be more ambitious by extending the scope of the proposal to cover all asset classes in the scope of PTT and to disapply PTT for transactions executed away from trading venues and made public on suitably qualified third-country approved publication arrangements.