The NYSE LIFFE Market Identifier Code (MIC code) is to change following their migration to ICE Futures Europe including guidance on BClear instruments.
This change has a direct impact upon firms’ regulatory reporting obligations impacting both EMIR trade repository reporting and MIFID transaction reporting obligations. This note summarises the changes and what action firms should be taking.
The ICE migration is complicated in that the exchange contracts are being migrated over 5 different dates with the final date of migration being 17th November 2014. Firms should note that fixed income instruments migrated over three different dates therefore the MIC for the respective contract needs to accurately reflect these changes. Further complexity is that close attention is also required in respect of the appropriate MIC being applied for example the MIC code is different for Equity Index Futures (IFLL) and Options (IFLO) contracts and this needs to be identified correctly in firms static data and subsequent reporting.
What should firms be doing?
Firms’ static data needs to be amended to reflect the correct MIC code at the time of the changeover for the impacted contracts. Post implementation quality assurance testing should be applied to ensure that EMIR and MiFID transaction reports reflects the MIC changeover and any timing errors are corrected.
With various LIFFE contracts being migrated to new MIC codes in stages firms will need to take great care to ensure that they use the correct MIC code for the relevant contract at the right time. For quick reference table detailing the precise changes to the appropriate MIC and the respective dates this was applied please refer to the below table which contains the full details.
LIFEE Contract Migration to ICE Futures Europe
Firms should also note, that going forward, trading previously undertaken utilising LIFFE BClear for wholesale market activity, will now be undertaken under ICE “block” trading rules. When reporting as per the above table, firms should consider the product sector and contract type and report the appropriate MIC ongoing from it’s respective migration date. Dependent upon the security, this trading activity will be subject to MiFID and/or EMIR reporting requirements. Firms are advised when reporting this activity that they are required to report the appropriate MIC in recognition of the particular security.
See below for further clarification.
- “Block” trade on an Equity Index Future the appropriate MIC is IFLL.
- “Block” trade on an Equity Index Option the appropriate MIC is IFLO.
- “BlocK” trade on White Sugar Futures and Options the appropriate MIC is IFLX.
Firms should refer to the “LIFFE to ICE Futures Europe Transition Notice” published September 2014 for further details of the migration impact.