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.

MiFID II LEI

  • 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.

Effectiveness

  • 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.