Are there any exclusions?

October 12, 2017

MiFIR RTS 22 also includes some exclusions:

  • SFTs (Security Financing Transactions) – unless a member of the European System of Central Banks is a counterparty
  • A contract arising exclusively for clearing or settlement purposes
  • Settlement of mutual obligations between partied where the new obligation is carried forward.
  • Acquisition/disposals that is solely a result of custodial activity
  • Post-trade assignment or novation of a derivative contract
  • Portfolio compressions
  • Creation or redemption of units of a collective investment undertaking.
  • Exercise of a right embedded in a financial instrument or conversion of a convertible.
  • Creation, expiration or redemption of a financial instrument as a result of pre-determined contractual terms.
  • Decrease/Increase in the notional amount of a derivative contract as a result of pre-determined contractual terms
  • A change in composition of an index or a basket that occurs after the execution of a transaction.
  • DRIPs (dividend reinvestment plan) another example would be employee share incentive plans.
  • an acquisition or disposal under an employee share incentive plan, or arising from the administration of an unclaimed asset trust, or of residual fractional share entitlements following corporate events or as part of shareholder reduction programmes (where additional criteria are met)
  • an exchange and tender offer on a bond or other form of securitised debt where the terms and conditions of the offer are pre-determined and published in advance and the investment decision amounts to a choice by the investor to enter into the transaction with no ability to unilaterally vary its terms.