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FAQs on transaction reporting – Question II.3.5.5

This question is related to intraday lifecycle events for Phase 2 Reporting.

When two companies have agreed a bilateral non OMP standard or non-standard contract, there is the possibility that once agreed, the volumes and/or values may change several times during the day until the end of the business day. At the end of the business day, the contract is considered binding and finalised volumes and values recorded accordingly.

Is it acceptable to report the final transaction details as a single new trade report or do you need to have the initial new and subsequent modifications to the trade reported?

Also, it may happen that after several modifications to the initial contract, it is cancelled at the end of the business day, so is it acceptable to report the trade as New and then Cancelled without reporting the modifications?”

“Example 1

Company A and Company B agree a bilateral contract at 10:00 of 1,000 units at a price of €50 per unit for a next day delivery.

During the course of the day the number of units and/or the price agreed changes several times as follows…

11:00 – 1,100 units at €49 per unit

13:30 – 1,000 units at €50 per unit

15:15 – 900 units at €50.50 per unit

17:00 – 750 units at €51.35 per unit

At the end of the business day a final agreement of 750 units and a price of €51.35 is made and contracted to.

Example 2

Company A and Company B agree a bilateral contract at 09:00 of 500 units at a price of €55 per unit for a next day delivery.

During the course of the day the number of units and/or the price agreed changes several times as follows…

10:00 – 600 units at €52.50 per unit

12:00 – 450 units at €56 per unit

17:00 – Contract cancelled

At the end of the business day the contract is cancelled.


Answer:

Based on the information provided above, life cycle events of a trade agreed at 10:00 am have to be reported as such. If during the course of the day the number of units and/or the price agreed change several times including the cancellation of a contract, they should be reported as life cycle events.

Last update: 26/09/2016   RSS_Icon Subscribe to this Page’s RSS