ESMA publishes list of supplementary deferrals for sovereign bonds

What Changed

Scope of Supplementary Deferrals The decision permits volume omission deferrals for sovereign bonds classified as Group 1, Category 1 instruments (medium-size, liquid instruments) under MiFIR's post-trade transparency framework. Market operators and investment firms may defer publication of transaction volumes until end-of-trading-day, rather than the standard 15-minute deferral period. Regulatory Rationale ESMA determined that these deferrals are necessary to account for specific characteristics of sovereign bond markets, particularly protecting market liquidity and ensuring orderly price formation without compromising overall MiFIR transparency objectives. The decision acknowledges that immediate 15-minute publication could adversely affect liquidity provision in certain market condit

Suggested Considerations

• *Immediate Compliance Preparation (by May 4, 2026)
• *System Configuration: Trading venues and investment firms must update post-trade reporting systems to implement volume omission deferrals for Group 1, Category 1 sovereign bonds, with automated end-of-day publication triggers.
• *Instrument Classification: Establish processes to correctly identify which sovereign bonds qualify as Group 1, Category 1 under Commission Delegated Regulation (EU) 2017/583 (RTS 2), referencing Table 2.6 of Annex III.
• *APA Coordination: Approved Publication Arrangements must configure deferral management services to apply volume omission rules consistently across all reporting firms, with fallback procedures for system failures.
• *Policy Documentation: Update post-trade transparency policies, procedures, and client disclosures to reflect the new deferral regime and explain the timing of volume publication.
• *Staff Training: Ensure trading, compliance, and operations teams understand the scope of deferrals, applicable instrument categories, and end-of-day publication obligations.

Key Dates

Who is Affected