The Markets in Financial Instruments Directive (recast) (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) were published in June 2014, and apply from 3 January 2018.
The framework legislation has been agreed, but the implementation measures need to be finalised to allow for the transposition of the new regime.
Building on the existing MiFID I requirements, the level and scope of transaction reporting obligations under MiFID II/MiFIR has expanded.
MiFID II Transaction Reporting
The aim of Transaction Reporting is to assist EU regulators in the detection and investigation of suspected market abuse. All firms that execute trades in relation to financial instruments that are traded on an EU regulated market are required to report transactions to their home state regulator as quickly as possible, and by no later than the close of the working day following the day upon which that transaction took place – in effect daily reporting.
Transaction Reporting is one of the key priorities for regulators. Some are already warning that there will be no latitude for non-compliance, including late reporting.
Our robust, automated financial control regime helps investments firms ensure readiness for the significant changes MiFID II/MiFIR will have in respect of Transaction Reporting requirements.
We adopt a 5 step approach to Transaction Reporting, from data extraction though to the management control reporting and report submission to the FCA's Approved Reporting Mechanism (ARM).