There are multiple types of regulatory reporting for financial instruments and the regimes have varying reporting requirements and affect entities in different ways. Which ones apply to you?

Summary tableWhat is it?Who has to report?
MIFIR Transaction Reporting (applying from 3 January 2018)Transaction reporting regime for regulatory (market integrity) purposesMiFID II Investment Firms (as defined below) and EEA branches of third country Investment Firms
MiFID Commodity Position Reporting (applying from 3 January 2018)Specific commodity derivative reporting regimeMiFID II Investment Firms and EEA branches of third country Investment Firms
EMIR ReportingTransaction reporting regime for regulatory (risk reduction) purposesAll counterparties to derivative transactions
MIFIR Trade PublicationPublic dissemination of trade data for transparency purposesTrading venue, Systematic Internaliser (“SI”) or Investment Firm
MiFIR Reference Data ReportingCompilation of financial instrument data by regulatorsTrading venues and SIs

MIFIR Transaction Reporting

The Multiple Types of Trade Reporting in UK and EuropeMiFIR transaction reporting requires the details of qualifying transactions to be reported to a National Competent Authority (“NCA”) or Approved Reporting Mechanism (“ARM”) within one day (T+1) of the transaction. It applies to transactions in financial instruments that are:

  •  admitted to trading or traded on a trading venue;
  •  whose underlying is a financial instrument admitted to trading or traded on a trading venue; or
  •  is an index of a basket comprised of such financial instruments,

regardless of whether these transactions are traded outside the trading venue.

Transaction reports are required to include the identity of both the client and the trader or algorithm responsible for the investment decision and/or execution. Keep an eye out for a separate article which we will release shortly, explaining the requirements for executing agents.

Who has to report?

Investment Firms as defined in Article 4(1)(1) of MiFID II  and EEA branches of third country Investment Firms

MiFID Commodity Position Reporting

Commodity derivatives listed on EEA trading venues (a Regulated Market (“RM”), Multilateral Trading Facility (“MTF”) or Organised Trading Facility (“OTF”) and OTC derivative contracts that are deemed to be ‘economically equivalent’ to the venue listed instruments.

Who has to report?

MiFID Investment Firms and EEA branches of third country Investment Firms who trade the relevant commodity derivatives.

EMIR Reporting

EMIR includes an obligation to report details of all derivatives to trade repositories.

Who has to report?

All counterparties to derivative transactions including both financial and non-financial counterparties but not natural persons.

MIFIR Trade Publication

Also referred to as ‘trade reporting’, trade publication relates to the near real-time public dissemination of trade data through an Approved Publication Arrangement (“APA”) required for transactions in in EEA venue-listed instruments. These reports don’t require as much information as a transaction report – the focus is on execution data relating to volume and price – and only one report is required for the trade rather than by all firms involved in the transaction as with transaction reporting.

Who has to report?

Either the trading venue or where a venue isn’t involved then the publication requirement falls to the SI. If no SI is involved in the transaction then the obligation falls upon an Investment Firm.

MiFIR Reference Data Reporting

MiFIR requires the submission of instrument reference data from certain firms. This will enable regulators to compile a list (ESMA’s Financial Instrument Reference Data System or ‘FIRDS’) of instruments that are traded on venue or by a SI.

Who has to report?

The reporting of reference data is an obligation that falls upon firms operating trading venues and firms acting as a SI.

If you would like to discuss the different types of regulatory reporting and which you may be subject to, please contact TRAction Fintech.