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FAQs on transaction reporting – Question II.1.1.23

Related documents: FAQs, Q 1.1.17: Two companies are subject to REMIT transaction reporting and both registered parties with ACER. Both companies are currently reporting their trades under their separate ACER Code.

On July 1 these companies will merge to one company and will use one ACER Code in the future.

We will therefore rename the new joint company and use the ACER code of one of the previous companies and delete the code of the other.

Do we need to cancel trades already reported as one of the former companies and resend them as new submissions under the merged company and new name with new UTI?

We would like to get guidance on how to proceed for our REMIT reporting!

Example: Company number 1 as a MP is currently reporting trades under REMIT under its own ACER code. On July 1 Company number 1 will be novated and become a new company which will have the ACER Code of Company number 2. What are the implications for trades reported under Company number 1?

Our current interpretation is to cancel all trades reported under Company number 1 and resend them under the name of the new joint company.

Is this correct and will the counterparty be obliged to do the same?


Answer:

As presented in Q 1.1.17 of the FAQs on Transaction Reporting, in order to report a novation, an early termination with the old UTI and a new trade with a new UTI should be reported. Both Companies number 1 and 2 will have to submit an early termination report with Action Type “C” for Cancel the old trade and a new submission with Action Type “N” for the new trades of the Company number 1.

Last update: 26/04/2017   RSS_Icon Subscribe to this Page’s RSS