Earlier this week, ESMA published its Final Report on the review of transaction and reference data reporting obligations under MiFIR.

The Final Report builds on ESMA’s Consultation on MiFIR transaction reporting published on the 24th of September 2020.

According to ESMA, the Final Report contains recommendations and possible legislative amendments to MiFID II/MiFIR with a view to simplifying the current reporting regimes whilst ensuring quality and usability of the reported data. It aims to achieve this through:

  • The replacement of the TOTV concept with the SI approach for OTC derivatives, taking into account the conclusions of ESMA’s Final Report on the transparency regime for non-equity instruments and the trading obligation for derivatives;
  • The removal of the short sale indicator;
  • The alignment with reporting regimes such as MAR, EMIR and the Benchmark Regulation;
  • The reliance on international standards, including LEIs, ISINs and CFIs; and
  • The inclusion of three additional data elements with a view to harmonise the way they are reported and avoid inconsistent and duplicative reporting of the same information at the national level. In particular, these are indicators for:
    • Buyback programs;
    • Information on MiFID II client categories; and
    • Transactions pertaining to aggregated orders.

ESMA’s recommendations are particularly relevant for trading venues, systematic internalisers, investment firms, data reporting services providers, and asset management companies.

The Final Report will be submitted to the European Commission and is expected to feed into any review of the transaction reporting regime in MiFIR.

The Final Report can be accessed here.

About ComplyPortal – Compliance software since 2011:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • eKYC system: perform comprehensive searches, including client identity verification, document authenticity, and more for a comprehensive KYC and AML approach