Q&A · ESMA

Legal qualification of Financial Transmission Rights under MiFID II

Answered

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AI-generated Summary

Financial Transmission Rights are C(10) financial instruments when traded on the secondary market, including off venue, so MiFID II applies to secondary trading platforms for them; FTRs in the primary market entered into with or by a transmission system operator are excluded.

Details

Reference	ESMA_QA_2436
Issuer	ESMA
Published	26 May 2026
Answered	26 May 2026
Submitted	12 Feb 2025
ESMA topics	Non-equity transparency

Provisions it relates to

Article 2 MiFID II · Exemptions
MiFID II
ESMA rulebook
Annex I MiFID II · LISTS OF SERVICES AND ACTIVITIES AND FINANCIAL INSTRUMENTS
MiFID II
Explicit reference · 90%
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe main MiFID II Delegated Regulation: defines key terms (such as investment advice, systematic internaliser, algorithmic and high-frequency trading, and direct electronic access) and sets detailed organisational requirements and operating conditions for investment firms, including compliance, conflicts of interest, remuneration, client information, suitability and appropriateness, best execution, client order handling, reporting to clients, record keeping and transaction-level obligations.