CySEC Reiterates ESMA MiFID II Transaction Reporting Guidelines


While the MiFID II Compliance Deadline approaches, CySEC reiterates ESMA MiFID II Transaction Reporting Guidelines in order to ensure the consistency in the application of these requirements.

7 December, AtoZForex The key financial regulator of Cyprus, the Cyprus Securities and Exchange Commission (CySEC), has issued s circular for the Reporting Entities on the island. These include Reporting Entities: Cyprus Investment Firms, Credit Institutions, Market operators of trading venues, and Approved Reporting Mechanisms.

CySEC Reiterates ESMA MiFID II Transaction Reporting Guidelines

The regulator wishes to inform the abovementioned entities that the European Securities and Markets Authority (ESMA) has published the Guidelines on transaction reporting, order record keeping and clock synchronization under MiFID II.

The Cypriot watchdog highlights that the ESMA has issued the guidelines on October 2, 2017. Furthermore, the CySEC specifically draws the attention of the Reporting Entities to the following points:

“These Guidelines apply in relation to the submission of transaction reports pursuant to Article 26 of Regulation (EU) No 600/2014 of the European Parliament and of the Council (MiFIR); record keeping of orders pursuant to Article 25 of MiFIR and synchronization of business clocks pursuant to Article 50 of Directive 2014/65/EU of the European Parliament and of the Council (MiFID II).”

Also, the CySEC specifies the purpose of these Guidelines. The supervisor stated that it aims to provide guidance to the reporting entities in regards to the compliance with the reporting and order record keeping provisions of MiFIR and Commission Delegated Regulation (EU) 2017/590, Commission Delegated Regulation (EU) 2017/580 and Commission Delegated Regulation (EU) 2017/574.

ESMA MIFID II Guidelines are not exhaustive

The Cypriot regulator further states that the ESMA MiFID II Transaction Reporting Guidelines are specifically designed to ensure the consistency in the application of these requirements. Particularly, the guidance is looking into the assembly of transaction reports and of the order data records.

Considering the range of the potential scenarios, the ESMA MIFID II guidelines are not exhaustive. Yet, persons subject to these guidelines must apply the elements of the most relevant scenario, according to the CySEC. The regulator’s circular reads:

“However, persons subject to these guidelines should apply the elements of the most relevant scenario to construct their records and reports. All the concepts specified in the guidance document apply solely to Article 25 of MiFIR on order data record keeping obligations, Article 26 of MiFIR on transaction reporting obligations and Article 50 on synchronization of business clocks of MiFID II. “

The supervisor further notes that the Guidelines will come into force from 3 January 2018. The CySEC will incorporate these guidelines into its supervisory practices. The regulator, therefore, urges all the financial market participants to whom these guidelines apply to make sure they comply with Guidelines.

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