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DCE: DCE Included in ESMA’s Post-Trade Transparency Positive List

Dalian Commodity Exchange (DCE) was recently added to the positive list covering the post-trade transparency assessment results of third-country trading venues (TcTVs) updated by the European Securities and Markets Authority (ESMA). This will make it easier for EU investors to be involved in transactions on DCE.

In June 2020, ESMA published an updated opinion and annexed list covering the post-trade transparency assessment results of third-country trading venues (TcTVs). According to the ESMA, European Union investment firms concluding transactions on TcTVs included in the positive list are relieved from the obligation to make those transactions post-trade transparent via an approved publication arrangement (APA).

To enhance market transparency, the Markets in Financial Instruments Directive II (MiFID II), which rolled out in 2018, extends the scope of requirements that applies to the post-trade transparency management system. According to ESMA’s opinion, the post-trade transparency obligation stipulated under MiFID II also applies to the transactions concluded by EU investment firms on TcTVs outside EU, and EU investment firms are responsible for undertaking the obligation of submission. However, if a TcTV is assessed by ESMA to meet certain criteria, the EU investment firms concluding transactions on this TcTV included in the positive list of ESMA are relieved from the obligation of reporting the post-trade transparency. Based on its assessment, ESMA has concluded that DCE meets all the relevant criteria and is therefore added to the positive list concerning TcTVs post-trade transparency assessment. This will make it easier for EU investors to be involved in transactions on DEC.

In recent years, under the leadership of the China Securities Regulatory Commission (CSRC), DCE has been constantly exploring the pathway of going global. It has also been benchmarking itself to international principles and best practices, and optimizing various rules and systems such as trading, clearing and delivery, so as to better serve its overseas investors. Going forward, DCE will continue to promote its international business development, improve its infrastructure development, and expand its promotion in overseas markets. These efforts are aimed to improve its capacity of serving investors at home and abroad, enhance its global influence, and contribute to the further opening-up of China’s financial market.


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