ESMA/EC: Definition of FX contracts

ESMA has published the text of a letter from Jonathan Faull of the EC(DG MARKT) concerning the definition of a financial instrument relating to foreign currency in MiFID II. It suggests that ESMA carefully considers whether the current approach by Member States achieves a sufficiently harmonised application of the EMIR reporting obligation in the period before application of MIFID II or whether further measures by ESMA, are necessary. It suggests that the definition has been “extensively discussed” already and sets out what it describes as a “broad consensus” on the defintion of FX spot contracts.