A Contract for Difference (CFD) is essentially a contract between an investor and a financial firm. At the end of the contract, the parties exchange the difference between the opening and closing prices of a specified financial instrument, including shares.
Australia
In Australia, CFDs are reported as equity derivatives, in the view of the underlying instrument, as outlined in ASIC Regulatory Guide 251, page 28. CFDs over other asset classes will be reported differently – TRAction Fintech can help you to determine these requirements.
UK & Europe
In UK & Europe, depending on the underlying asset class, CFDs are required to be reported under EMIR Regulation (EU) No 648/2012 or Markets in Financial Instruments Directive 2004/39/EC.
Recent Articles:
EMIR Refit: Impact on Power Purchase Agreements (PPAs) Reporting
EMIR Refit marks a new era of regulatory oversight in the derivatives markets. Among its numerous amendments, EMIR Refit introduces crucial changes which will affect the reporting of existing Power Purchase Agreements (PPAs).
How Does The End of Daylight Saving Affect Your ASIC Reporting?
Daylight saving time has ended in Australia. Here are our tips on how to ensure the time settings in your trade/transaction reporting are correct.
Daylight Saving Time Starts This Sunday in Europe and the UK – What Does This Mean for Your Trade Reporting?
Most European countries alongside the UK will need to turn their clocks forward by 1 hour this Sunday, 31 March 2024. While you enjoy the sun and longer days, you will also need to check that the time settings in your trade/transaction reporting are correct.
EMIR Refit: Unique Transaction Identifiers (UTI)
Both ESMA and the FCA are placing greater emphasis on Unique Transaction Identifiers (UTI) and their consistent application between counterparties. In an effort to align the UK and EU reporting frameworks with global standards, regulators have introduced the UTI generation waterfall developed by CPMI-IOSCO into both EU and UK EMIR Refit 2024. This aims to foster data harmonisation and ensure a more globally consistent dataset.