Implementation of MiFID II and MiFIR by BSE-Sofia

UniCredit Bulbank AD
The Bulgarian Stock Exchange-Sofia (BSE-Sofia) addressed its members with a letter advising main steps that have to be taken in relation to the forthcoming implementation of the Markets in Financial Instruments Directive 2014/65EU (MiFID II), the Markets in Financial Instruments Regulation 600/2014 (MiFIR) and the related Regulatory Technical Standards (RTS).
Wed, 28/06/2017

BSE-Sofia announced that, together with Deutsche Boerse which is the administrator of the Xetra trading system, it is in a process of preparing the necessary procedures for the implementation of MiFID II, the MiFIR and RTS and outlined some of the main steps that will be taken:

  •  BSE-Sofia will be conducting regular risk assessments of its members based on a completion of relevant questionnaires;
  • All BSE-Sofia members and their respective clients who are legal entities will be required to obtain a Legal Entity Identifier (LEI). The LEI number will be assigned by the Central Depository AD. For clients natural persons a National ID will be used. The National ID will be formed by the two letter code of country of residence of the investor followed by the national client identification code as determined by the provisions of MiFIR. These identification numbers will comprise the information to be completed for placing orders and concluding deals at the Stock Exchange and will also be used for reporting purposes. BSE-Sofia requires this information to be available as of 1 December 2017.
  • Orders and quotes of market makers, that are intended to ensure liquidity in line with RTS 24 will be marked accordingly in the trading system;
  •  The minimum lots as stipulated in RTS11 will be introduced by Xetra;
  • In line with the provisions of RTS 11 orders placed in the market via direct electronic access platforms (Direct Electronic Orders) will be designated as such in the trading system for the purposes of their regulatory reporting.

Impact on investors:  In order to trade on the BSE-Sofia, investors will have to obtain a LEI for legal entities or National ID for natural persons.