MiFID II Transaction Reporting

MiFID II Transaction Reporting requires investment firms to report complete and accurate details of their transactions to their competent authorities, no later than the close of the following working day.

Kaizen's David Nowell outlines what the regulators expect for accurate MiFID II reporting.

What is MiFID II Transaction Reporting post-Brexit?

While Brexit has introduced some slight divergence between the UK and EU MiFIR transaction reporting requirements, most notably in the reportable instrument set, the regimes are almost identical and serve the same purpose: to help regulators detect and prosecute market abuse.

Complying with the MiFIR transaction reporting regime has proved to be an onerous and complicated task for firms. In part, this is because of the sheer volume of regulation and guidance relating to the reporting requirement. Reports are required for all asset classes and comprise of up to 65 XML fields.

To meet the requirement of complete and accurate reports mandated by MiFIR, firms have to understand not just the regulation, but also the Regulatory Technical Standards (RTS), Guidelines and the continually evolving Q&A documentation from ESMA. This is not an easy task and the regulators are not noted for their tolerance of firms failing to comply.

How we can help

Accuracy Testing and Reconciliations are mandated under RTS 22, Article 15 of MiFIR. Our ReportShield™ quality assurance services are designed to specifically address Article 15’s requirements and include the following:

“Firms need arrangements to ensure reports are complete and accurate. This includes testing of reporting process and regular reconciliations of their front office trading records against samples provided by their competent authorities.”

MiFIR – RTS 22, Article 15

What MiFID II reporting challenges are you facing?

For a conversation with one of our regulatory specialists, please get in touch.

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