EU Suspension of Derivatives Trading Obligation on Platforms: What Changes for Banks and Funds in 2026

Key data

Banks, investment funds and investment services companies in the EU have had, since June 12, 2026, a formal exception to one of the most relevant obligations in the European derivatives market: the obligation to trade certain derivatives exclusively on regulated platforms, imposed by the MiFIR Regulation (EU) No. 600/2014.

The Commission Implementing Regulation (EU) 2026/1288, published in the EU Official Journal on June 15, 2026, activates the figure of individual suspension of that trading obligation. The European Commission has used the delegated powers granted to it by MiFIR itself to adapt obligations to market reality when liquidity conditions do not guarantee efficient trading on platforms.

What does this regulation establish?

MiFIR requires that certain derivatives—those declared sufficiently liquid and standardized—be traded only on regulated platforms: regulated markets, multilateral trading facilities (MTFs) or organized trading systems (OTSs).

Regulation 2026/1288 applies the figure of individual suspension, which allows specific exceptions when:

• Market conditions do not guarantee efficient trading on regulated platforms.
• The liquidity of the derivative in question is not sufficient to meet the requirements of the trading obligation.

During the suspension period, affected entities may trade those derivatives outside mandatory platforms, recovering the operational flexibility they had before the trading obligation came into force for those instruments.

Economic and operational impact

The suspension has direct consequences in two critical areas for financial entities:

• Risk management: Entities recover the ability to execute hedging operations with derivatives outside regulated platforms, allowing greater flexibility in structuring customized hedges.
• Hedging strategies: Banks and funds can adapt their hedging strategies to adverse market conditions without being limited by the platform trading obligation, reducing execution risk in low-liquidity markets.
• Regulatory compliance: Entities must update their internal procedures to reflect the suspension and properly document operations conducted outside platforms during the applicable period.
• Operating costs: The ability to trade outside platforms may reduce transaction costs in derivatives affected by the suspension, by avoiding the requirements and fees associated with trading on regulated platforms.

Who does it affect?

• Banks and credit institutions in the EU that operate with derivatives subject to the MiFIR trading obligation.
• Investment funds (UCITS, AIFs) that use derivatives for hedging or portfolio management.
• Investment services companies (ISCs) authorized in the EU that trade derivatives on their own account or on behalf of clients.
• Treasury and risk management departments of large corporations that use financial derivatives to hedge interest rate, currency or other risks.
• Compliance officers of any of the above entities, who must update their procedures and internal controls.

Practical example

A Spanish investment fund that uses interest rate swaps to hedge the risk of its fixed income portfolio was obligated, under MiFIR, to execute those operations on regulated platforms (for example, an authorized OTS). If the specific derivative it needs for its hedge is included in the suspension of Regulation 2026/1288 and the market for that instrument shows low liquidity on platform, the fund can now trade that swap directly with a banking counterparty outside the regulated platform, without incurring a MiFIR violation.

The fund's compliance officer must, however, document that the operation is covered by the current individual suspension and update the transaction record in accordance with revised internal procedures.

What should companies do now?

1. Identify affected derivatives: Review which derivative instruments of the entity were subject to the MiFIR trading obligation and verify whether they are covered by the suspension of Regulation 2026/1288.
2. Update compliance procedures: Modify internal compliance manuals and controls to reflect the individual suspension and applicable documentation requirements during the period of validity.
3. Review hedging strategies: Evaluate with the risk management team whether the suspension opens opportunities to optimize hedges that previously had to be executed on platform with lower efficiency.
4. Document all off-platform operations: Ensure that each operation conducted off-platform under the suspension is properly recorded, indicating the regulatory basis (Regulation 2026/1288).
5. Monitor the suspension period: The suspension is temporary. Establish alerts to know when it ends and be prepared to resume the platform trading obligation when applicable.
6. Consult with specialized legal advisor: Since the suspension is individual and its scope depends on specific instruments, it is advisable to validate with an expert in financial markets regulation (MiFIR/MiFID II) the specific impact for the entity.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601288