EU · MiFIR · TITLE V DERIVATIVES

Article 28 MiFIRObligation to trade on regulated markets, MTFs or OTFs

In force

Read the official text on EUR-Lex(opens in a new tab)

AI-generated What this provision does

Derivatives trading obligation: financial and non-financial counterparties subject to the EMIR clearing obligation must trade derivatives declared subject to the trading obligation with each other only on regulated markets, MTFs, OTFs or equivalent third-country venues. Derivatives exempt from or outside the clearing obligation are not caught, ESMA monitors other derivatives for systemic risk, and the Commission may adopt third-country equivalence decisions.

Amendments and application dates

Amending act	Change	Applies from
Regulation (EU) 2024/791	Text inserted; Text amended	28 Mar 2024

Level 2: delegated and implementing acts

Implementing actIn forceLegal basis
Commission Implementing Decision (EU) 2020/2127 of 16 December 2020 amending Commission Implementing Decision (EU) 2019/541 on the equivalence of the legal and supervisory framework applicable to approved exchanges and recognised market operators in Singapore in accordance with Regulation (EU) No 600/2014 of the European Parliament and of the Council
European Commission · 17 Dec 2020 · EUR-Lex
AI summaryAmends Implementing Decision 2019/541 on the equivalence of Singapore approved exchanges and recognised market operators under Article 28(4) MiFIR, adding further MAS-authorised recognised market operators on which derivatives subject to the trading obligation may be traded.
Implementing actIn forceLegal basis
Commission Implementing Decision (EU) 2019/541 of 1 April 2019 on the equivalence of the legal and supervisory framework applicable to approved exchanges and recognised market operators in Singapore in accordance with Regulation (EU) No 600/2014 of the European Parliament and of the Council (notified under document C(2019) 2349)
European Commission · 2 Apr 2019 · EUR-Lex
AI summaryCommission equivalence decision under Article 28(4) MiFIR recognising listed approved exchanges and recognised market operators in Singapore, authorised by MAS, so EU counterparties may meet the derivatives trading obligation by trading on them; the list was extended by Implementing Decision 2020/2127.
Implementing actIn forceLegal basis
Commission Implementing Decision (EU) 2017/2238 of 5 December 2017 on the equivalence of the legal and supervisory framework applicable to designated contract markets and swap execution facilities in the United States of America in accordance with Regulation (EU) No 600/2014 of the European Parliament and of the Council
European Commission · 6 Dec 2017 · EUR-Lex
AI summaryCommission equivalence decision under Article 28(4) MiFIR recognising US designated contract markets and swap execution facilities authorised by the CFTC, so EU counterparties may meet the derivatives trading obligation by trading on them.
RTSIn forceLegal basis
Commission Delegated Regulation (EU) 2017/579 of 13 June 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on the direct, substantial and foreseeable effect of derivative contracts within the Union and the prevention of the evasion of rules and obligations
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryRTS specifying when OTC derivative contracts between third-country entities have a direct, substantial and foreseeable effect within the EU (where covered by guarantees from EU financial counterparties above set thresholds, or concluded between EU branches of third-country financial counterparties) and when they must be treated as evading the MiFIR derivatives trading obligation.

Level 3: ESMA Q&As, guidelines and opinions

Q&AAnsweredExplicit reference · 90%
ESMA_QA_1665: Third country trading venue request access to an EU CCP in the absence of an equivalence decision
ESMA · 2 Apr 2019 · the ESMA website
AI summaryA third-country trading venue may request access to an EU CCP under Article 38 MiFIR without an equivalence decision under Article 28(4), except for derivatives subject to the trading obligation traded on a regulated market; access for derivatives traded on MTFs and OTFs falls under EMIR.
Q&AAnsweredInferred · 95%
ESMA_QA_1560: Scope of the trading obligation for interest rate derivatives
ESMA · 28 Mar 2018 · the ESMA website
AI summaryThe derivatives trading obligation under Delegated Regulation 2017/2417 covers only the specified interest rate swaps traded at par; non-par swaps, including market-agreed-coupon swaps, are not currently subject to it.
OpinionPublishedESMA rulebook
ESMA70-156-322: Opinion On the treatment of packages under the trading obligation for derivatives
ESMA · the ESMA website
AI summaryESMA opinion (ESMA70-156-322) that, for packages including a derivative subject to the MiFIR trading obligation, authorities should expect execution on a trading venue only for packages whose components are all subject to the trading obligation, or the trading and clearing obligations, or an interest rate swap subject to the trading obligation paired with government bonds in the same currency (spread-overs); ESMA may revisit this.
Q&ALegacy Q&A documentESMA rulebook
ESMA70-1562901-35: Questions and Answers On MiFID II and MiFIR transparency topics
ESMA · the ESMA website
AI summaryESMA's consolidated legacy Q&A document on MiFID II and MiFIR transparency (final version 27 October 2023, printed with the reference ESMA70-1562901-35), covering equity and non-equity transparency, pre-trade waivers, the double volume cap, the systematic internaliser regime, data reporting services providers and third-country issues. It is no longer updated; later Q&As are in ESMA's Q&A tool.

Commentary

No law-firm commentary is linked to this provision yet.

219 more documents relate to MiFIR as a whole without naming an article.

UK counterpart

Article 28 UK MiFIR · Obligation to trade on regulated markets, MTFs or OTFs
UK MiFIR
Revocation enacted by Financial Services and Markets Act 2023; no commencement date yet.
DivergedExplicit reference
EU changes after exit: Regulation (EU) 2024/791 (from 28 Mar 2024). UK changes after onshoring: Financial Services and Markets Act 2023 (from 29 Aug 2023). UK revocation enacted (Financial Services and Markets Act 2023), not yet commenced.

Version history

From 28 Mar 2024
From 2 Jul 2014 to 28 Mar 2024

Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.