Summary of CySEC's Circular C375

Memo #23-2020

CySEC Circular No: C375
Date: 06/04/2020
Subject: COVID-19: ESMA’s Public Statements regarding the application of MiFID II/MiFIR
Purpose: To draw the attention of the CIFs to the Public Statements issued recently by the ESMA clarifying the application of MiFID II/MiFIR requirements.

In Summary:

CySEC has issued the Circular C375 on 06/04/2020 in order to draw the attention of the Cyprus Investment Firms (the “CIFs”) to the Public Statements that the European Securities and Markets Authority (the “ESMA”) has recently issued, and which clarify the application of MiFID II/MiFIR requirements.
These ESMA’s Public Statements are referred to:
• the recording of telephone conversations;

• the publication of reports by execution venues and firms as required under RTS 27 and 28, and;

• the new tick size regime for systematic internalisers.

This Circular includes more details about: 
• Clarification of issues related to the application of MiFID II requirements on the recording of telephone conversations,
  
• Clarification of issues related to the publication of reports by execution venues and firms as required under RTS 27 and 28, 

• Actions to mitigate the impact of COVID-19 on the EU financial markets regarding the new tick size regime for systematic internalisers.

The ESMA’s Public Statement issued on 20 March 2020 clarifying issues regarding the application by credit institutions and investment firms of the MiFID II requirements on the recording of telephone conversations, can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma35-43-2348_esma_statement_on_covid-19_telephone_recording.pdf 

The ESMA’s Public Statement issued on 31 March 2020 with regards to the publication of reports by execution venues and firms as required under RTS 27 and 28, can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma35-36-1919_esma_statement_on_covid-19_and_best_execution_reports.pdf 

The ESMA’s Public Statement issued on 20 March 2020 regarding the compliance with the new tick size regime for systematic internalisers, introduced to MiFIR by Regulation (EU) No 2019/2033, can be found on the following link: https://www.esma.europa.eu/sites/default/files/library/esma70-156-2486_public_statement_tick_sizes.pdf 

The ESMA’s Public Statements are issued due to the significant immediate challenges to financial institutions following the outbreak of COVID-19.

The CySEC notes that taking into account the exceptional circumstances created by the COVID-19 outbreak, CySEC will follow the recommendation of ESMA as stated in the abovementioned public statements.

Read the CySEC Circular C375

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