ESMA Updates Transparency Manual With OTC Derivatives and Tick-Size Guidance

The European Securities and Markets Authority (ESMA) has updated its transparency manual with guidance for identifying over-the-counter (OTC) derivatives subject to transparency requirements and for applying the tick-size regime. The changes are intended to support more consistent supervisory practices across the European Union. The revised manual clarifies how identifying reference data for OTC derivatives should be supplied for transparency purposes. ESMA says the guidance is intended to improve consistency in data reported to and published through the consolidated tape. For this reference-data section, the manual should be treated as a draft until related technical standards enter into force: RTS 2 and the regulatory technical standards on consolidated tape provider (CTP) input and output data. The update also incorporates several published questions and answers on tick sizes and adds recommendations on applying the regime. These address circumstances in which trading venues and national competent authorities may intervene. The update provides guidance rather than announcing a new binding rule, and ESMA’s caveat means the OTC reference-data guidance remains provisional pending the relevant technical standards.