Revocation of retained EU law Transitional amendments Amendments to the Markets in Financial Instruments Regulation (MiFIR) and the European Market Infrastructure Regulation (EMIR) Fixed income and derivatives markets
The Derivatives Trading Obligation (or DTO) is set out in Article 28 MiFIR. There are three fundamental components to the DTO:
the counterparties on whom the DTO is imposed. The DTO applies to all ‘financial counterparties’ (FCs) and to a subset of ‘non-financial counterparties’ (NFCs). The terms ‘financial counterparty’ and ‘non-financial counterparty’ are taken from another retained EU Regulation, the European Market Infrastructure Regulation or EMIR. 18
the derivatives coming under the scope of the DTO. These are the derivatives within a class that the FCA has declared to be subject to the DTO and listed in a public register.
the venues on which transactions must be concluded by the counterparties under the DTO. The counterparties on whom the DTO is imposed must trade the derivatives coming under the scope of the DTO on a UK authorised trading venue, or overseas trading venue that benefits from an equivalence decision.