Under the Markets in Financial Instruments Directive (MiFID) rules, all reportable transactions are to be reported to transaction reporting systems collectively as Approved Reporting Mechanisms (ARMs).
What is required to be reported?
Currently MiFID transaction reporting only applies to financial instruments admitted for trading on a regulated market (and to OTC derivative contracts linked to those instruments).
Trade reporting is real-time reporting of trade data for price formation and operation of best execution obligations.
Transaction Reports can be reported within one business day of the trade occurring. Details of transaction reporting revolved around the client on whose behalf the transaction is taking place. Transactions are required to be reported to an ARM who analyse the information prior to providing the transaction reports to a regulatory body. Reporting entities must report details of trades in listed equity and debt products (and derivatives of them). Reportable products include:
- All trades including OTC trades
- All equities and bonds listed on EEA regulated markets
- Derivative contracts of all equities and bonds listed on EEA regulated markets
Who is required to report?
MiFID requires banks, trading firms and asset managers to report securities and derivatives trades.