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FAQs on transaction reporting – Question II.2.5.2

XXX Futures EU and XXX Spot seek further clarification from ACER in relation to the back loading requirements for Exchange Traded Derivatives.

On page 19 of the TRUM, ACER states that: “In order for the agency and the NRAs to know each market participant’s open positions at the time the reporting obligation becomes applicable, market participants shall report contracts which were concluded before the date on which the reporting obligation becomes applicable and remain outstanding in that date.”

Please could ACER clarify if and how the back loading requirement covers Exchange Traded Derivatives (“ETDs”)? Whilst the TRUM states that organised market places’ willingness to assist market participants with the back loading reporting is entirely at the discretion of the OMP, there is a potential reporting burden placed on Market Participants for which they may need the assistance of the OMP.

Example: When an ETD such as a futures contract is traded top day, the contract is concluded that day leaving an “End of Day” position at the exchange level. The positions in these ETD contracts do not remain outstanding and the positions are not technically “open” in that the transaction has been concluded. The futures position can however be subsequently traded out if the position holder decides; this would result in new trades.  Effectively, unless the position has not been assigned correctly, prior to the 07 October 2015, then there are technically no trades that have yet to be concluded to report.

The back loading requirement does not cover ETDs   (futures and options) given that they are no contracts which were concluded before the date on which the reporting obligation becomes applicable (07 October 2015) and remain outstanding on that date.


Answer:

In our view, outstanding contracts are those contracts that have an outstanding physical or financial flow as defined by the contract and not by the settlement of the invoice date. For futures we would expect to see the positions that are technically still “open” and that can be still trade out (or closed) or to be settled. Please see also “Additional clarification on the back loading requirement” available in the TRUM.

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