EU suspends the MiFIR derivatives trading obligation for four bank market-makers on UK venues
EU and non-EEA counterparties trading DTO-subject derivatives with four named banks on UK venues must update DTO routing for the carved-out market-makers
Change
On 12 June 2026, the European Commission adopted Implementing Regulation (EU) 2026/1288, the first use of MiFIR Article 32a, suspending the derivative trading obligation — only for the UK market — for BNP Paribas, Crédit Agricole CIB, Deutsche Bank and Société Générale as market-makers, and for BNP Paribas additionally for credit default swaps on UK dealer-to-dealer venues.
Why it matters
The act carves a defined hole in the derivative trading obligation: the four named banks may now provide liquidity in DTO-subject OTC derivatives to non-EEA counterparties on UK trading venues, which the DTO otherwise prohibited because UK venues are not recognised as equivalent under Article 28. The suspension is conditional and policed — the banks must verify counterparty domicile, confirm non-EEA clients have no active EEA-venue membership before accepting RFQs, and report counterparty lists to their competent authority. The EMIR clearing obligation is unaffected. As the first operational use of Article 32a, it sets the template competent authorities and counterparties will track for future DTO suspensions, and the Commission can revoke any suspension if a firm stops meeting the conditions.
Implications
- — BNP Paribas, Crédit Agricole CIB, Deutsche Bank and Société Générale may provide liquidity in DTO-subject OTC derivatives on UK trading venues to non-EEA counterparties only under the committed compliance procedures — verifying client domicile and confirming no active EEA-venue membership before accepting RFQs — and must report their non-EEA counterparty lists to their competent authority; lapses can trigger Commission revocation of the suspension.
- — Non-EEA counterparties and non-EEA asset managers dealing DTO-subject derivatives with these banks on UK venues must expect domicile and EEA-membership checks before they can submit RFQs, since the suspension only covers counterparties with no active EEA-venue membership.
- — Trading-obligation and market-structure compliance teams at EU financial counterparties should update their DTO venue-routing logic to reflect that these named market-makers are carved out for the UK market, while the EMIR Title II clearing obligation continues to apply unchanged.
Who is affected
- — BNP Paribas, Crédit Agricole CIB, Deutsche Bank and Société Générale and their trading-compliance teams
- — Non-EEA counterparties and non-EEA asset managers trading DTO-subject derivatives with these banks on UK venues
- — Trading-obligation and market-structure compliance teams at EU financial counterparties
What to watch
- — 18 June 2026 — start of the five-year cycle for the Commission's review of whether the grounds for suspension continue to apply.