EUROPEAN UNION: ESMA Updates MIFIR Q & A’s

Tuesday November 14 2017

On 14^th November  the European Securities and Markets Authority (ESMA) updated the Transaction Reporting Requirements in its MIFIR Question and Answers (Q&As) document.  This document is aimed at the providing clarity and guidance to Market Participants on MIFIR.

The Amended Guidance specifically concerns issues arising when the price of a transaction is not available at the time of execution (e.g. the NAV for certain ETFs). In such an event the guidance explains how  investment firms fulfil their post-trade transparency obligations under Articles 20 and 21 of MiFIR and their transaction reporting obligations under Article 26 of MiFIR for those transactions?

The New Guidance states that:

If the price of a transaction is not available at the time of execution, investment firms should fulfil the applicable reporting obligations using ‘PNDG’ as price, specified in the field ‘Price’ of table 3 of Annex I of RTS 1, table 2 of Annex II of RTS 2 and/or field 33 of table 2 of Annex I of RTS 22.

As soon as the price of the transactions (including the NAV in the particular case of ETFs) becomes available, investment firms should cancel the original reports with the ‘PNDG’ price (using the cancellation flag for post-trade transparency publication purposes) and publish new reports/ send new transaction reports pertaining to the given transactions using the actual price that became available (using the amendment flag for post-trade transparency publication purposes).

The date and time specified in the field “Publication date and time” of table 3 of Annex I of RTS 1, table 2 of Annex II of RTS 2 and/or field 28 of table 2 of Annex I of RTS 22 should always refer to the original date and time of the execution

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