In its response, FESE argues that the proposal by ESMA would result in a more restrictive pre-trade transparency regime for package orders than for individual transactions. The proposed approach would result in the vast majority of exchange traded derivatives packages being determined as liquid, meaning the waiver could not be applied to them. Furthermore, the proposed methodology concentrates on characteristics of individual components of the package rather than assessing the package as a whole.

FESE recommends that ESMA considers quantitative criteria that assess the package order as a whole. FESE also argues that in order to safeguard the critical role of liquidity providers, the large in scale waiver should be implicitly extended to liquid package orders. Furthermore, FESE believes that a distinction needs to be drawn between package orders where all components of the package are executed on one single trading venue, and package orders where the components of the package are executed on different venues.

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