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FAQs on transaction reporting – Question II.2.1.8

Data Field (8)

Article 4 (1)(a) of the Regulation 1348/2014 – Reporting of intragroup transactions and beneficiary identification.

A broker concludes a back-to-back transaction in an organised market place. It acts as a Principal, however the Beneficiary of the transaction will ultimately be a market participant belonging to the same capital group as the broker.

Can ACER confirm that:

1) the transaction concluded by the broker in the organised market place should be reported without indicating the Beneficiary in the Field 8 (as it is a back-to-back transaction);

2) the transaction between the broker and the market participant should not be normally reported at all (as it is an intragroup transaction and takes place OTC).

Hence, ACER will not have information about the beneficiary of the transaction?


Answer:

A back-to-back transaction is a bilateral transaction not executed on the exchange. The transaction concluded by the executing broker at the Organised Market Place should be reported by the exchange indicating the Beneficiary in the Field 8 if this information is available to the exchange. Please see the TRUM, guidance on Field 8.

The transaction between the broker and the market participant may not be reported if this is an intragroup transaction and takes place OTC. However, nothing prevents the market participant from reporting the back-to-back transaction to ACER.

Based on the above, the Beneficiary will be the executing broker who is also a market participant if the back-to-back transaction is an intragroup transaction. It is worth noting that if no beneficiary is provided, then the market participant indicated in Filed (1) will be assumed to be the beneficiary.

Last update: 08/09/2015   RSS_Icon Subscribe to this Page’s RSS