To be reportable an instrument must be considered a financial instrument specified in Part 1 of Schedule 2 to the Regulated Activities Order and be admitted to trading or traded on a trading venue within scope of the UK MiFID framework.
When a transaction is reportable
Under Article 26(2) UK MiFIR, the obligation in Article 26(1) UK MiFIR for investment firms which execute transactions in financial instrument will apply if the instrument falls into 1 of the following 3 categories, irrespective of whether such transactions are carried out on the trading venue:
- Article 26(2)(a) financial instruments which are admitted to trading or traded on a UK, Gibraltar or EU trading venue or for which a request for admission to trading has been made.
- Article 26(2)(b) financial instruments where the underlying is a financial instrument traded on a UK, Gibraltar or EU trading venue. The underlying applicable to various categories of instruments is set out in field 47 (underlying instrument code) of Commission Delegated Regulation (EU) 2017/590 (RTS 22) as onshored.
- Article 26(2)(c) financial instruments where the underlying is an index or a basket composed of financial instruments traded on a UK, Gibraltar or EU trading venue. To be reportable under Article 26(2)(c) the index (or indices) or basket only needs to include one financial instrument that is traded on a trading venue. Financial instruments that have more than one index as an underlying are also reportable under Article 26(2)(c).
It is the responsibility of firms caught by the Article 26 UK MiFIR transaction reporting obligations to establish an appropriate process for identifying what transactions are reportable to us.
Under Article 15(g) of Commission Delegated Regulation (EU) 2017/590 (RTS 22) as onshored, firms and trading venues should have mechanisms to avoid reporting where there is no transaction within the meaning of Article 2 of RTS 22 or where the instrument does not fall within scope of Article 26(2) of UK MiFIR. Our Market Data Processor (MDP) system provides a pending mechanism to assist firms in managing their over-reporting.
Read our reference data pages for more information on the process.