ESMA updates its manual on transparency with new guidance for OTC derivatives and tick-size regime
AI Analysis
ESMA updated its MiFID II/MiFIR transparency manual on 15 October 2026, adding guidance on identifying OTC derivatives subject to transparency requirements, the reference data to be supplied for those instruments, and application of the equity tick-size regime. The OTC reference-data guidance is expressly draft guidance until the related RTS 2 and consolidated tape provider input/output technical standards enter into force, while the tick-size material is intended to improve supervisory convergence rather than create a new standalone binding rule.
Key dates
- 2026-10-15
- ESMA published the updated transparency manual and added the OTC derivative reference-data guidance, tick-size Q&As and recommendations.
Suggested considerations
- Compliance teams may wish to map OTC derivatives currently treated as subject to transparency against the identifying reference-data requirements in Commission Delegated Regulation (EU) 2025/1003.
- Firms should consider reviewing instrument-master, transaction-reporting and transparency-publication workflows to ensure OTC derivative identifiers and related reference data can be supplied consistently to relevant publication and consolidated-tape processes.
- Trading venues may wish to assess tick-size logic for subscription rights and verify that the liquidity band applied is aligned with the underlying share, while documenting any intervention or exception decisions against the manual's recommendations.
- Investment firms and trading venues should consider reviewing existing MiFID II/MiFIR transparency procedures, controls and vendor specifications in light of the manual's Q&As and the distinction between current guidance and draft OTC reference-data guidance.
- Firms should monitor the entry into force of the related RTS 2 and consolidated tape provider input/output standards and be prepared to refresh implementation plans, testing and contractual data specifications when those standards become applicable.
- Nationally supervised firms may wish to retain evidence showing how tick-size decisions, venue interventions and escalation to competent authorities were assessed against the updated supervisory-convergence material.
What changed
The manual clarifies that OTC derivatives subject to transparency must be identified using the identifying reference data specified by Commission Delegated Regulation (EU) 2025/1003, supporting consistent reporting and publication through the consolidated tape. It also explains how that reference data should be provided for transparency purposes; ESMA states this part should be treated as draft until the related RTS 2 and RTS on consolidated tape provider input/output data enter into force. The manual incorporates published Q&As on the tick-size regime under Article 49 of MiFID II and Commission Delegated Regulation (EU) 2017/588 (RTS 11), including that subscription rights should be subject to the regime and use the same liquidity band as their underlying shares. It adds recommendations d
Compliance impact
The update signals closer supervisory scrutiny of instrument identification, reference-data quality and consistent tick-size application, with potential downstream effects on transparency publication, consolidated-tape data quality and venue controls. It does not itself establish a new binding compliance deadline; the OTC reference-data material remains draft pending the related technical standard
Who is affected
Related regulations
References
AI-generated analysis. May contain errors or omissions — verify with the original ESMA source before acting. Full disclaimer.
What the ESMA said
ESMA updates its manual on transparency with new guidance for OTC derivatives and tick-size regime 15 October 2026 Trading The European Securities and Markets Authority (ESMA), the EU regulator and supervisor, has updated its manual on transparency to provide further guidance on the identification of over-the-counter…
Extract from ESMA . Read the full notice at the source for the authoritative text.