What is MiFIR reporting?
On 20th October 2011, the European Commission published two proposals: the revised Markets in Financial Instruments Directive (MiFID II) along with Markets in Financial Investments Regulation (MiFIR). Both the Directive and Regulation aim to establish a safer and more transparent financial system by enhancing regulatory requirements, market transparency and investor protection. The regulation set out to:
- Strengthen investor protection
- Reduce the risk of market disorder
- Reduce systemic risk
- Increase the efficiency of financial markets
MiFID II/MiFIR sets out a number of reporting requirements in relation to the disclosure of trade data to the public and competent authorities. MiFID II/MiFIR are closely linked to the MiFID transaction reporting requirements, but more complex in terms of its scope and reporting content.
The MiFIR reporting obligations came into effect on January 2018.
Which firms are affected?
The MiFID II/MiFIR impacts on European securities markets structure and specifically "investment firms". MiFID’s scope is extending under MiFID II/MiFIR to cover more asset classes, so more firms are caught by the reporting obligations. Additionally, discretionary portfolio managers in the UK who currently rely on the report made by their EEA sell side brokers’ reports may find that they will need to report in their own name to the FCA under MiFID II/MiFIR.
Does MiFID II/MiFIR reporting affect you?
Key points at a glance
MiFID II/MiFIR brings a significant expansion in the range of reportable instruments:
- Financial instruments admitted to trading or traded on a Trading Venue or which a request for trading has been made
- Trading venue = Regulated Market, MTF or an OTF
- Clearly adds FX, commodities and interest rate derivatives
- Financial instruments where the underlying is a financial instrument traded on a trading venue
- Increases the number of OTC derivatives to be reported and introduces requirement to report certain derivatives traded on third country derivative exchanges
- Financial instruments where the underlying is an index or a basket composed of instruments traded on a trading venue
MiFID II/MiFIR also covers the number of fields making up a transaction report to 81.
Find out more
The European Commission have more details about all of the different elements of MiFID II/MiFIR on their website. Follow this link for details.
How can UnaVista help you with MiFID II/MiFIR reporting?
UnaVista can assist you with a number of regulations, (including MiFIR, EMIR, SFTR and G20 derivative reporting), so that you don’t have to build separate solutions for each problem. Any future regulations can then be catered for through the platform when required.
Utilise our Transaction Reporting experience
The new MiFID II/MiFIR transaction reporting requirements will be an evolution from the current MiFID reporting obligations. We will continue to offer the highest standards as an Approved Reporting Mechanism to ease clients through the transition. We will build upon the regulated set of fields that we currently use as an ARM to report to all Competent Authorities and offer advice, support and training for our clients.
Avoid duplicate reporting
In order to ease adoption, many of the fields are common to transaction reporting and trade repositories. We envisage that we will be able to operate a single reporting service for both MiFID II/MiFID transaction reporting requirements and the EMIR requirements to report to a trade repository.
Reference data from the source
London Stock Exchange are the UK’s national numbering agency and will be allocating LEIs, meaning firms will have a direct link to the source of the new mandated identifiers.