On 4 November 2016, the European Securities and Markets Authority (ESMA) published an updated questions and answers (Q&A) document on the application of MiFID II/ MiFIR which clarifies when ESMA will publish the first set of data needed to implement the Systematic Internaliser (SI) regime and the date by when firms must comply with the SI regime for the first time.

The key dates are:

• 1 August 2018: ESMA will publish information on the total number and the volume of transactions executed in the European Union for the first time by 1 August 2018, covering the period from 3 January 2018 to 30 June 2018.
• 1 September 2018: investment firms must undertake their first assessment by and, where appropriate, comply with the SI obligations (including notifying their National Competent Authority) by 1 September 2018.
• Quarterly updates: for subsequent assessments, ESMA will publish data by the first calendar day of February, May, August and November. Investment firms are expected to perform the calculations and comply with the SI regime by the fifteenth calendar day of February, May, August and November.

Application date
The earliest mandatory deadline on which firms must comply with the SI regime, when necessary, is 1 September 2018 although MiFID II and MiFIR apply from 3 January 2018. However, ESMA stresses that investment firms can opt-in to the SI regime for all financial instruments from 3 January 2018 as a means of complying, for example, with the trading obligation for shares.

The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of the MiFID II/ MiFIR and its implementing measures.