Please insert at least 3 characters

FAQs on transaction reporting – Question II.2.4.8

IAs:  Table 1, field #58.   TRUM:  We note that the TRUM v1.0 states the following on p.25:   “Lifecycle events that happen bilaterally between the counterparties with- out involving a broker, or an organised market, should be reported by the market participants through third parties.”

We kindly ask for the Agency’s opinion and clarification on the following, please:  Timeframe:

i) For OMP-traded deals: If MPs are to report subsequent bilateral lifecycle events of OMP-traded deals via third party RRMs (i.e. after the “new” execution has been reported by the relevant OMP), is the relevant start-date for the reporting of such purely bilateral lifecycle events Phase 1 or Phase 2?

ii) For OTC-traded deals: We expect the start-date for bi- lateral lifecycle events of OTC-traded deals to be in Phase 2.

Reporting Channel:

i) OMP: If OMPs would agree to offer the service of re- porting any bilateral non-OMP lifecycle events on be- half of the MPs, does ACER foresee that both MP counterparties would need to notify the broker/OMP of the bilateral lifecycle event?

ii) 3rd party RRM: If the OMP does not agree to report bi- lateral modifications, does this mean that MPs need to be prepared to report directly to a 3rd party RRM in Phase 1 (for instance, through the 3rd party RRM(s) that the MP envisions to use for OTC/bilateral trade reporting in Phase 2)?

Example:

A deal is concluded via two counterparties over a broker, and the broker submits a “new” transaction report in Phase 1. The two counterparties later agree to amend the deal bilaterally without the involvement or knowledge of the broker.

Our assumption is that such bilateral lifecycle modifications of OMP-traded deals need to be reported in Phase 1, even though no OMP is involved.


Answer:

If two counterparties enter into a trade concluded over a broker platform (Organised Market Place), the broker (subject to an agreement with the market participants) will submit a “new” transaction report on a T+1 basis in Phase 1.

If the two counterparties to the trade agree to amend the deal bilaterally without the involvement or knowledge of the broker, they are responsible for the reporting of such lifecycle events which have to be reported on a T+1 basis in Phase 1.

OTC transactions, are normally reportable on a T+30 basis in Phase 2. Please see the TRUM for additional clarifications.

Last update: 16/11/2015   RSS_Icon Subscribe to this Page’s RSS