ESMA Publishes List of Supplementary Deferrals for Sovereign Bonds

Why It Matters

The change reduces reporting burdens while preserving market transparency, supporting smoother trading of sovereign bonds across the EU. It signals a coordinated regulatory effort to balance efficiency with oversight in a critical asset class.

Key Takeaways

• ESMA adds supplementary deferrals to MiFIR for sovereign bonds.
• Volume reporting can be delayed until day‑end for medium trades.
• Applies from 4 May 2026 across all EU NCAs except Slovakia.
• Aims to harmonize transparency while easing implementation pressures.
• Targets liquid Group 1 bonds, enhancing market efficiency.

Pulse Analysis

The MiFIR framework has long required real‑time publication of trade details to promote transparency in European financial markets. However, sovereign bond trading presents unique challenges, given the diversity of issuers and the high volume of transactions. ESMA’s decision to introduce supplementary deferrals reflects a pragmatic shift, allowing market participants to postpone volume reporting for medium‑size trades on the most liquid government securities. By aligning the deferral schedule with existing market practices, the regulator aims to mitigate operational strain without compromising the core objective of price discovery.

For trading venues, investment firms and Approved Publication Arrangements, the new deferral regime offers a clearer compliance timeline. The ability to aggregate volume data until the close of the trading day simplifies data handling and reduces the risk of reporting errors during peak periods. Moreover, the uniform start date of 4 May 2026 ensures that all participants operate under the same rules, eliminating the fragmentation that could arise from staggered national implementations. This consistency is especially valuable for cross‑border trading platforms that serve multiple EU jurisdictions.

Beyond immediate operational benefits, the supplementary deferrals may enhance overall market liquidity. By lowering the administrative load on participants, the rule encourages more frequent and larger trades, particularly in the highly liquid Group 1 sovereign segment. The approach also demonstrates ESMA’s willingness to adapt regulatory requirements in response to industry feedback, fostering a collaborative environment between supervisors and market actors. As the EU continues to refine its post‑MiFIR landscape, such calibrated adjustments are likely to shape a more resilient and efficient sovereign bond market.

ESMA publishes list of supplementary deferrals for sovereign bonds

ESMA publishes list of supplementary deferrals for sovereign bonds 19 February 2026

Post Trading

The European Securities and Markets Authority (ESMA), together with National Competent Authorities (NCAs), has agreed supplementary deferrals that may be applied on top of the standard Markets in Financial Instruments Regulation (MiFIR) deferral regime for sovereign bonds.

ESMA and all NCAs, except the National Bank of Slovakia (NBS), have decided to allow the following supplementary deferrals: for trades of a medium size on liquid bonds in Group 1, the publication of the volume may be omitted until the end of the trading day. 

The supplementary deferrals should start applying on 4 May 2026.

Background

As these decisions concern sovereign bond markets, which are critical and specific to each EU Member State, it was necessary to conduct consultations with the relevant regulatory bodies and financial institutions to arrive to a common approach. 

The consultations resulted in a short time between the publication of the deferrals list and the start of the new regime on 2 March 2026, potentially causing implementation issues for trading venues, investment firms and Approved Publication Arrangements (APAs).

Therefore, a sufficient implementation period should be provided. In addition, to ensure a consistent application of the transparency regime, supplementary deferrals should apply from the same date, regardless of any differences in the timing of individual decisions adopted by Member States (for sovereign bonds issued by Member States), and the ESMA decision (for other sovereign bonds).

Further information:

Cristina Bonillo

Senior Communications Officer

[email protected]

19/02/2026

ESMA74-276584410-11245

Decision on allowing supplementary deferrals for sovereign bonds under MiFIR

19/02/2026

ESMA74-276584410-11142

List of supplementary deferrals for sovereign bonds under MiFIR