CME Regulatory Reporting combines faster on-boarding, specialist consultancy and support, agile technology and global regulatory end-point connectivity, to ensure clients stay fully compliant with trade and transaction reporting requirements under MiFID II/ MiFIR.
MiFID (Markets in Financial Instruments Directive) II increases transaction reporting complexity and scope, presenting a major challenge to operations, technology and compliance teams for a larger segment of financial market participants.
MiFIR (Markets in Financial Instruments Regulation) mandates new ‘market abuse’ reporting, directly or via an Approved Reporting Mechanism (ARM). MiFIR expands the reportable dataset to require personal identification of decision makers and traders and other trade flags to provide regulators with a window into your – and the wider market’s – trading activity and behaviour.
What must be reported?
MiFID II increases the scope of reportable instruments and execution venues:
Reportable Financial Instruments include Equities, Rates and Credit products and new asset classes including currency, commodity and interest rate derivatives (and emission allowances).
As well as regulated markets, “Trading venues” now include Multilateral Trading Facilities (MTF), Organised Trading Facilities (OTF), and Systematic Internalisers (SI).
Additional ‘best execution’ reporting is required in respect of equity execution quality and commodities positions.
A transaction does not need to have been executed on an EU trading venue to be subject to MiFID II reporting. For example, derivatives traded outside of the EU where the underlying is traded on an EU trading venue will have to be reported.