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FAQs on transaction reporting – Question II.3.1.15

Reference to documents: TRUM V2.0 , 3.2.6, page 20

TRUM V 2.0 3.2.10, pages 26-26; TRUM Annex II v 2.0* (2015-11-16) pages  6-9; TRUM Annex II v 2.0*, example 3.09

Reporting of Executions in case of a standard/non – standard Option contract (volume optionality)

As understood, EXECUTIONS need to be reported in case volume is not defined when concluding the contracts.

However, it is not clear if the same logic applies with Option contract with a definite strike prices and delivery period. As described in TRUM, an option exercise is not considered a lifecycle event. In the example 3.09 (option via a broker platform), it is not clear whether any subsequent event (“execution”) needs to be reported in order to specify the final volume.

A swing option, traded outside OMP

-fixed premium

-fixed strike price

-fixed delivery period

-maximum daily volume

-minimum total volume (for the entire delivery period)


Answer:

[UPDATED] based on additional input provided by the Agency’s stakeholders

The reporting of these type of flexible contracts is based on the reporting of non-standard contracts with Table 2 followed by EXECUTION or BILCONTRACT contract EXECUTION (s) no later than 1 month after the price and the volume are known. Please see Q. 3.1.28 whether the execution should be reported as EXECUTION or BILCONTRACT contract, also considering that examples reported in Annex II to the TRUM are non-exhaustive.

Last update: 10/07/2017   RSS_Icon Subscribe to this Page’s RSS