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.
- 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.