In order to establish whether given physical forward is a financial instrument under MiFID II counterparties will have to implement the process for ongoing comparison of their trading conditions with on-venue contracts (and, moreover, not only with contracts traded on regulated markets, MTFs and OTFs, but also with those traded on third-country trading venues).

 

Is it really the intention? Consequences may be severe... Take for example the term for reporting the OTC derivative contract to the trade repository under EMIR - one working day only. Is this enough time for such complex analyses?

 

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