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Transaction Reporting
On 1st November 2007 the European Communities (Markets in Financial Instruments) Regulations, 2007 (Statutory Instrument No. 60 of 2007) will come into force. The regulations include provisions for the reporting of transactions in financial instruments to the Financial Regulator.
- What Must be Reported by Investment Firms
Under the provisions of Section 112 of that Statutory Instrument (See Appendix A), investment firms, including relevant credit institutions1 , will be subject to a regulatory requirement to provide a transaction report to the Financial Regulator about each transaction executed in:
- Financial instruments that are admitted to trading on a regulated market;
- Financial instruments that are admitted to trading on a Multilateral Trading Facility operated by a market operator;
- Financial instruments the value of which are derived from, or which are otherwise dependant upon, debt or equity instruments admitted to trading on a Regulated Market or a Multilateral Trading Facility operated by a market operator;
- Financial Instruments the value of which are derived from, or which are otherwise dependant upon, indices of financial instruments admitted to trading on a regulated market or a Multilateral Trading Facility operated by a market operator.
This obligation will apply not only to transactions executed in financial instruments admitted to trading on the Irish Stock Exchange or the Irish Enterprise Exchange, but also to transactions executed in financial instruments admitted to trading on any other EU Regulated Markets or Multilateral Trading Facilities operated by a market operator, such as the London Stock Exchange, including AIM. The transaction reporting obligation will apply to trades whether executed on or off the market.
The obligation to report falls only on what the Committee of European Securities Regulators (“CESR”) calls the ‘market facing’ firm. The Financial Regulator is happy to discuss with firms any areas of uncertainty that arise with this concept.
Financial instruments are the instruments specified in Part 3 of Schedule 1 of the European Communities (Markets in Financial Instruments) Regulations 2007.
- How to Report
Investment firms will be required to make these transaction reports electronically on our website, by the close of the day following the day on which the transaction was executed. Investment firms will be able to enter data into the Financial Regulator’s system either by online entry or by uploading an XML file, in the specified format. CESR has now finalised the XML Schemas required for transaction reporting between competent authorities and the XML Schemas to be used for reporting to the Financial Regulator which is available on this website. It is expected that for a two week period before the system goes live investment firms will be able to commence testing with the Financial Regulator’s system. Investment firms are advised to check the Financial Regulator’s website, for updated information regarding the timetable for transaction reporting testing.
Queries concerning these obligations may be sent by email to transactionreporting@financialregulator.ie. Where these queries raise generic issues, in addition to responding directly, we will develop a Q&A section on this website
- Contents of the Transaction Report
The list of fields required in a transaction report is set out in a separate file on this website. We also provide some additional guidelines on how certain fields should be populated and guidelines on how transactions in certain instruments, including over-the-counter (OTC) derivatives, should be reported.
- Validation
Where our validation process returns a submitted report due to incorrect completion, this will not constitute meeting the reporting requirement. This will only be satisfied when the correct report is received.
- Use of Agents
It is acceptable to the Financial Regulator that a third party would act on an investment firm’s behalf in forwarding these reports, provided that they can provide the data in a suitable format. The investment firm will remain responsible for ensuring the transaction reports are made on time and in the correct format. If investment firms want to use the services of an agent, the relevant documentation appointing such agent must be in a manner acceptable to the Financial Regulator. We will provide further advice on this matter, in due course.
- Branches
All transactions executed by branches located in this State, where the service is provided within the territory of this State, shall be reported to the Financial Regulator. Other transactions executed by branches should be reported to the home Member State competent authority, unless the branch elects to report to the Financial Regulator.
- Additional Reference Data
Where a transaction is done on behalf of more than one client, each constituent transaction must be reported and each ultimate client identified. Investment firms will be required to maintain a single reconciled database of clients, assigning client codes to each client. This is to be forwarded to the Financial Regulator periodically as reference data for interpreting the client codes provided in the transaction report. In the absence of such a database, the investment firm will be required to provide the full name and address of each client with each transaction. Further details concerning the format of this client list will be posted on our website.
- Fees
A fee will be payable for each transaction report made. This fee will contribute to covering the cost of receiving, transmitting to other regulators and monitoring the transaction reports received and any consequential markets supervisory actions.
1 A relevant credit institution is a credit institution, which provides one, or more investment services and/or engages in investment activities as defined in the MiFID.
Appendix A (23.00 KB DOC)
List of Fields (66.50 KB DOC)
Transaction Reporting - FAQs
Click here to download FAQs - 12.07.07.doc (23.00 KB DOC)
Transaction Reporting Schema
Click here to download the Transaction Reporting Schema (13.6 KB ZIP)
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