U.K. – FCA Change in Control

On 20 September, UK FCA issued rules on ESA guideline on qualifying holding.

  • Followed EC July 2017 regulation on information for qualifying holding.

UK Implementation

  • The joint ESA guidelines on prudential assessment of acquisitions and increases of
    qualifying holdings in the financial sector, will come into force on 1 October 2017.
  • FCA and PRA have notified the ESAs they will comply with guideline except on the
    provision relating to the identification of acquirers for indirect qualifying holdings.
  • Firms should use existing methodology, under Part XII FSMA, to identify controllers.
  • Cited reference guide on identifying controllers and web page on change in control.

U.S. – CFTC Large Trader Reporting

On 19 September, CFTC issued online portal of large trader reporting form.

  • CFTC operate large trader reporting program to collect information of participants.
  • Used the information to help ensure the integrity of the futures and swaps market.
  • Has trader-identifying information in CFTC Form 40, statement of reporting trader.
  • Based on trader reporting thresholds in Parts 15 and 20 of the CFTC’s regulations.
  • From traders which hold or control a reportable futures, options or swaps position.

Online Portal

  • Updated online filing portal of submission of CFTC Form 40 improves functionality.
  • Added more user-friendly features, while collecting very same type of information.
  • Wizard-style, allows user to better navigate through the different sections of form.
  • Faster completion, replaced prior version of form that appeared as one long page.
  • Auto-save feature allows users to disconnect from portal, without information loss.
  • PDF version give users option to generate PDF versions of the final submitted form.
  • May generate XML version of submitted form, if needed to later update submission.

U.K. – FCA Market Watch MiFID

On 18 September, FCA issued market watch on conduct and trade reports.

  • FCA market watch 53 newsletter on market conduct, and trade reporting issues.
  • MiFID II legal entity identifiers, data obligations, MDP entity portal, outsourcing.


  • Firms subjected to MiFID II reporting, must obtain a Legal Entity Identifier (LEI).
  • LEI is identifier for persons that are legal entity or structure (companies, trusts).
  • Keep LEI updated, ensure eligible clients have LEI, before acting on their behalf.

Market Data Obligations

  • Launch market data processor (MDP) for firms to meet MiFID II data obligations.
  • MiFID II data submitted to the MDP as transaction reports, instrument reference
    data transparency, double volume cap reports and commodity derivative position.

MDP Entity Portal

  • Available web application for external users, provides access to the MDP system.
  • On requests for transaction reporting sample data, access to ITE for connectivity,
    conformance testing, enable entities to monitor completeness of file submission.
  • From 3 January 2018, firms need to use MDP entity portal to request report extract.

Outsourcing Market Data

  • Firms are responsible for completeness, accuracy, and timeliness of data reports.
  • Different sorts of outsourcing for transaction reporting instrument reference data,
    transparency calculation data, double volume cap and derivative position reports.

Instrument Reference Data

  • Systematic internalizer (SI) submit financial instrument reference data, in cases.
  • such as where underlying instrument is financial instrument is traded on a venue
    or index, or basket composed of financial instruments traded on a trading venue.


  • Firms subject to MiFID II and eligible clients must comply LEI from 3 January 2018.
  • MDP entity portal already available for ITE, and will be live as from 3 January 2018.

U.K. – FCA MiFID Authorizations

On 18 September, FCA issued statement on remaining MiFID authorizations.

  • Highlighted that MiFID II widened the scope of firms that require FCA authorization.
  • Unregulated proprietary traders using direct electronic access now need to register.
  • If firms have not submitted application already then firms urgently need to submit.
  • Firms who have submitted but not completed process to submit information ASAP.
  • If unsure of whether new permissions are required then should consult FCA’s guide.

India – SEBI Position Limits

On 13 Septemebr,  SEBI clarified position limit on OTC currency derivative.

  • Brokers to ensure that positions created in FCY-INR pairs are within position limit.
  • Following currencies are involved: USD-INR, EUR – INR, GBP – INR and JPY – INR.
  • Single INR position limit for bank brokers higher of 15% total OI pairs, or $200m.
  • For non-bank brokers, limit is higher of 15% of total OI across all pairs or $100m.
  • Exchanges shall implement a uniform methodology for computing positions limits.

Poland – PFSA Alternative Funds

The PFSA issued guidance on alternative asset management funds.

  • Guidance followed extensive amendments in 2016, to Polish investment fund act.
  • Rule effective, guidance is applied to fund managers, alternative asset managers.
  • PFSA reminded companies of permissions, registration requirements, supervision.


  • Must keep in mind thresholds for asset management and composition of portfolio.
  • Executives, boards must ensure activities examined and analyzed for compliance.
  • Special rules regarding gold, precious metal related alternative investments apply.
  • Cited consequence of violating rules, including fines and potential criminal results.

Spain – CNMV MiFID Trade Reports

On 12 September, CNMV issued guide to transaction reporting under MiFIR.

  • Covers updates to CNMV operational guide for transaction reporting under MiFIR.
  • The revised version includes technical specifications for XML file headers, response.
  • And supplements 8 August, ESMA’s updated guidelines to correct typos.
  • Guide mainly aimed at IT units and regulatory compliance on transaction reporting.
  • Aims to facilitate the understanding of transaction reporting system used by CNMV.
  • It includes description of the different communication channels provided by CNMV.
  • And reporting transaction data files, file flow with the entity with obligation to notify.
  • As well as naming convention defined by CNMV for every file exchanged and errors.

Spain – CNMV Extends Short Sale Ban

On 12 September 2017, CNMV extended the restriction on short position in Liberbank, SA.

  • Agreement extended restriction on short positions by two months, to Nov. 30, 2017.
  • On 12 September 2017, ESMA extended short selling ban per Spanish CNMV, for Liberbank.
  • On 13 Septemebr 2017, FCA extended short selling ban per Spanish CNMV, for Liberbank.
  • Measure will enter into force on 12 September and be applicable until 30 November 2017.

E.U. – ESMA MiFID Bond Transparency

On 11 September, ESMA revised transitional transparency, FAQs for bonds.

  • Transitional transparency of bonds, update calculation of two other asset classes.
  • Follows EC March 2017 transparency rules for bonds in official journal.
  • Used to waive the obligation to make public pre-trade information for larger size.
  • Applied for market operators, and to investment firms operating a trading venue.

Transitional Calculation

  • MiFID II requires EU State NCAs, to publish information on liquidity classifications.
  • On sizes large in scale (LIS) vs. normal market, size specific to instrument (SSTI).
  • Publish six months prior to date of application of MiFIR, schedule on 3 January 2018.
  • All EEA NCAs, except for Poland, have delegated to ESMA, the compilation of TTC.
  • ESMA compiled transitional calculation using data provided by EEA trading venues.
  • Results of calculations by Poland were included in files published on ESMA website.

Revision of July 2017 Data

  • On 3 July 2017, ESMA published TTC on all non-equities except bonds.
  • September 2017 data is revising ESMA July 2017 transparency calculation for non-equity,
  • Publication delay as ESMA detected data quality problem, requested resubmission.
  • Final calculations incorporated data on OTC market information provided by TRAX.
  • After TTC publication in July 2017, some venues notified ESMA of problems in data.
  • The problem affected the calculations for credit derivatives and equity derivatives.
  • Thus, ESMA has corrected and recalculated TTC, for both asset classes accordingly.
  • ESMA said performed the calculations with great care, and to the best of its ability.
  • However, given complexity of calculations, further changes can’t fully be ruled out.
  • ESMA expected to continuously supplement and update data provided as necessary.
  • Any future update will be published on ESMA site with information in news section.

Data by Asset Class

Legal Entity Identifiers (LEIs)

  • ESMA noted LEIs were not provided for some reference entities for single name CDS,
    and issuers of underlying bond on rate derivativeS, but will be mandatory January 2018.

Sweden – SFI Commodity Position Limit

On 5 September, SFI proposed rules on commodity position limits under MiFID.

  • Proposed new regulations which establish position limits on commodity derivatives.

MiFID Limits

  • Regulations put into effect the legislative changes brought about by MiFID II/MiFIR.
  • MiFID II require competent authorities to establish position limits for commodities.
  • Restrict net position that natural or legal person may hold in commodity derivative.
  • If traded in a trading venue in Sweden, and economically equivalent OTC contracts.


  • Consultation period on the proposed regulations comes to an end on 22 September 2017.
  • Proposed to come into effect alongside the legislative amendments, on 3 January 2018.