5. Market Infrastructure and Transparency Obligations

The chapter discusses the wide and complex regulatory framework regarding pre- and post-trade transparency obligations, aimed at reducing information asymmetry and contributing to the overall ‘market infrastructure’. First, we provide an overview of the most salient provisions encompassed by the European Market Infrastructure Regulation (EMIR, No. 648/2012), as the latter—though focused on derivatives—constitutes the basis upon which the transparency framework has been drawn up in the Package. Then, we move onto the details of the discipline, which actually informs each section of both the Directive and the Regulation: inter alia, we present the different types of ‘data reporting service providers’ (DRSPs), which are intermediaries entitled to collect, store, and convey exchange-related information, ensuring their integrity and security. In particular, we devote a special attention to waivers and deferrals, which are critical in order to assess the likely impact of the new rules. Coming back to the content of EMIR, the chapter ends by directly facing the issue of derivatives trading, which is going to be increasingly disputed between trading venues and OTC markets, raising relevant transparency concerns.