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FAQs on transaction reporting – Question II.2.3.7

For Exchange Traded Commodity Derivatives only, executed by an Executing broker and cleared at a Clearing Broker. From the Executing Brokers point of view only:

  1. Can ACER confirm that if an underlying client is not a REMIT market participant, then we as the executing broker have no obligation to populate them as the beneficiary in field 8?
  2. Can ACER confirm that if an underlying client has registered as a REMIT market participant, however only executes cash settled derivatives, with no ability to make or take delivery and is not an exchange member, they would not be considered market participants for the purpose of reporting these trades only and therefore we as the executing broker have no obligation to populate them as the beneficiary in field 8?
  3. Can ACER confirm that if an executing broker knows they are giving up an executed transaction to an EMIR regulated clearing broker, or for a client who is required to report under EMIR, they can place reliance on the fact that the beneficiary will be reported under EMIR? Order details will still be reported as standard by us via the OMP.

Answer:

With regard to point (1) field (8) Beneficiary ID indicates the ID of the beneficiary of the transaction in the case that the trade is executed by a third party on behalf of a market participant. If an executing broker’s underlying client is not a REMIT market participant, then the executing broker may not populate the beneficiary in field (8).

With regard to point (2), if an executing broker underlying client has registered as a REMIT market participant (meaning that that person enters into transactions, including the placing of orders to trade, in one or more wholesale energy markets) even if only executes cash settled derivatives, with no ability to make or take delivery and is not an exchange member, that person would be considered market participant for the purpose of reporting all their trades and orders and therefore the executing broker may populate that market participant as the beneficiary in field (8).

If a person is a market participant that person has to report all their transactions in wholesale energy markets irrespective of where they take place. If field (8) is not populated, a back to back transaction between the executing broker and their underlying client should be reported, unless that transaction was already reported under EMIR.

With regard to point (3) above, according to the ANNEX III of the TRUM, under REMIT the executing broker (e.g. firm ABC) has to submit the order details only. This reporting must be done by delegation to the Organised Market Place or third party service provider. Firm ABC does not have to submit any trade report if the trade was reported under EMIR. Contract details reported by the clearing broker (Firm XYZ) and by the executing broker’s client (Client 123), under EMIR and, according to the Agency’s understanding, should make reference to the executing broker.

Last update: 14/12/2016   RSS_Icon Subscribe to this Page’s RSS