02 Feb. 2007 -
Article 25 of MiFID establishes a transaction reporting regime where investment firms shall submit reports of executed transaction to their competent authorities regarding financial instruments admitted to trading on regulated markets. The reports can be made either by investment firm itself, a third party acting on its behalf or by a regulated market or MTF through whose systems the transaction was completed. Competent authorities shall further exchange the reports between themselves.
The purpose of transaction reporting is to enable competent authorities to monitor the activities of investment firms and to ensure that they act honestly, fairly and professionally and in a manner which promotes the integrity of the market.
CESR-Tech and TREM project are preparing the technical system for exchanging the data between CESR members. In addition the technical work some issues have been identified where there is a need for harmonised approach by CESR members. This document provides guidance to three aspects of transaction reporting: practical solutions for the reporting obligations for branches; an answer to what constitutes “execution of a transaction” for transaction reporting purposes; and operational solutions for some aspects on reporting channels.
The outcome of CESR´s work is reflected in the common guidelines set out in this paper which do not constitute European Union legislation and will not require national legislative action.
CESR members will apply the guidelines in their day-to-day regulatory practices on a voluntary basis. Even if they do not directly apply to market participants, there is a general commitment by all CESR members to consider that these entities would fulfil their requirements when following the recommendations set out in this paper.
The manner in which the guidelines will be applied will be reviewed regularly by CESR. These guidelines will not prejudice, in any case, the role of the Commission as guardian of the Treaties.
Public Consultation and Timetable
CESR invites responses to this consultation paper. Respondents can post their comments directly on CESR´s website (www.cesr.eu) under the section “Consultations”. The consultation closes on 2 March 2007.
To view the joint press release for this consultation and the consultation on Best Execution, please click on the following link