Article 1(6) of the Markets in Financial Instruments Regulation (MiFIR) contains an exemption from pre- and post-trade transparency requirements for transactions where the counterparty is a member of the European System of Central Banks (ESCB) and where that transaction is entered into in performance of monetary, foreign exchange and financial stability policy which that member of the ESCB is legally empowered to pursue and where that member has given prior notification to its counterparty that the transaction is exempt. Article 1(9) of MiFIR empowers the European Commission (the Commission) to adopt delegated acts in order to extend this exemption to other central banks.
The Commission has now adopted a Delegated Regulation supplementing MiFIR as regards the exemption of certain third countries’ central banks in their performance of monetary, foreign exchange and financial stability policies from pre- and post-trade transparency requirements.
The Annex to the Delegated Regulation specifies 13 third-country central banks to whom the exemption applies:
- Reserve Bank of Australia (Australia);
- Central Bank of Brazil (Brazil);
- Bank of Canada (Canada);
- Hong Kong Monetary Authority (Hong Kong);
- Reserve Bank of India (India);
- Bank of Japan (Japan);
- Bank of Mexico (Mexico);
- Monetary Authority of Singapore (Singapore);
- Bank of Korea (South Korea);
- Swiss National Bank (Switzerland);
- Central Bank of the Republic of Turkey (Turkey);
- Federal Reserve System (United States); and
- The Bank for International Settlements.
The Council of the EU and the European Parliament will now consider the Delegated Regulation. If neither of them objects, it will enter into force 20 days after its publication in the Official Journal of the EU.
View Commission Delegated Regulation (EU)…/… of XXX supplementing Regulation (EU) 600/2014 of their European Parliament and of the Council as regards the exemption of certain third countries central banks in their performance of monetary, foreign exchange and financial stability policies from pre- and post-trade transparency requirements, 6 April 2017