Ezra Zahabi Quoted by IFLR on Definition of Trading on a Trading Venue

Ezra Zahabi, counsel in Akin Gump’s financial regulatory practice, has been quoted in the International Financial Law Review article “Mifid II: what is traded on a trading venue?” which examines attempts by the European Securities and Markets Authority (Esma) to clarify a question pertaining to over-the-counter derivatives and the Markets in Financial Instruments (Mifid) II directive.

According to the article, trading venues had been concerned by a lack of clarity surrounding how certain instruments will be defined under Europe’s new regulatory framework. The issue arises out of reporting on certain types of financial instruments, and the directive dictates that if the instrument is traded on a trading venue (TOTV), then reporting obligations apply. But, it’s up to Esma, the article says, to define what TOTV actually means.

“Esma seems well aware there are potential problems with this and that the guidance won’t work for all purposes,” said Zahabi. “It doesn’t seem sufficiently nuanced, given the nature of derivatives.”