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Kristina Frunze

20 September 2017

Regulation Forex

CySEC issues New MiFIR Transaction Reporting Requirements Circular


Ahead of the new legal frameworks that are going to be valid from the 3rd of January, global regulators hurry to inform the market participants about the upcoming changes in the regulatory norms. One of the latest documents to pay attention to is the New MiFIR Transaction Reporting Requirements Circular from CySEC.

20 September, AtoZForex - The Cyprus Securities and Exchange Commission (CySEC) had quite a busy day today! The regulator has issued two strategic documents, one of which aims to inform the Reporting Entities about the new requirements in regards to the transaction reporting regime.

CySEC issues New MiFIR Transaction Reporting Requirements Circular

The new requirements regarding transaction reporting regime are provided in article 26 of Regulation (EU) No 600/2014 on Markets in Financial Instruments (MiFIR). The regulator also highlights that they will be valid from the 3 January 2018.  The CySEC states the following in the official circular:

“Under the existing framework and in particular, according to article 25 of Directive 2004/39/EC on Markets in Financial Instrument (‘MiFID I’), investment firms which execute transactions in any financial instruments admitted to trading on a regulated market are required to report details of such transactions to their competent authority as quickly as possible, and no later than the close of the following working day. “

The watchdog further states that this obligation is relevant irrespective of the fact whether or not such transactions take place on the market with regulations.

MiFIR regulatory framework: What exactly will change?

Following on this, the Cypriot regulator states that MiFIR comprises a number of changes on the abovementioned MiFID I transaction reporting regime. Particularly, the CySEC stated that MiFIR extends the scope of:

i. financial instruments for which transactions should be reported (additional financial instruments are captured under MiFIR),

ii. information that should be provided per each transaction (MiFIR extends the information to be included in transaction reports compared to MiFID I from 23 data fields to 65 data fields).

Key MiFIR reporting transactions provisions

One of the key provisions of the circular states that the investment firms that execute transactions in financial instruments must report complete and accurate details of such transactions to the competent authority. Moreover, this should be done as quickly as possible and not later than the close of the following working day. The CySEC further states:

“According to article 26(2) of MIFIR, the obligation to report transactions applies to:

i. financial instruments which are admitted or traded on a trading venue or for which a request for admission to trading has been made;

ii. financial instruments where the underlying is a financial instrument traded on a trading venue and; 

iii. financial instruments where the underlying is an index or a basket composed of financial instruments traded on a trading venue."

Further, the regulator elaborates on the activities that are reportable. Also, it specifies the arrangements for submitting the transaction reports to competent authorities. Moreover, the CySEC outlines the requirements for the Content of Transactions Reports. The official CySEC circular can be found here.

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MiFID ii MiFIR reporting transactions CySEC

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