10. Who do Transaction Reports need to be made to?

10.1. Branch Reporting Requirements

All EU entities that execute reportable transactions are subject to MiFID transaction reporting obligations. Trades executed by a regulated entity within its home jurisdiction must be reported to its home state regulator. This means that a UK firm would have to report all their UK executed trades to the FCA.

Under MiFID transactions executed by branches must be reported to the host member state regulator and the transaction reports must follow the rules of the regulator to which the report is made.

Executions by non EEA branches of the firm do not need to be reported to the FCA, however, as most systems cannot identify these transactions from the normal UK executions they are transaction reported.[1]TRUP v3, section 5.1

Where executions take place outside of the jurisdiction of the branch, for example a Spanish trader from the Spanish branch of a UK firm executes a trade in Portugal, the branch has the option of whether to report the trade to either:

  1. its home state regulator (in our example the FCA)
  2. the host state regulator (in our example the Spanish CNMV)

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1. TRUP v3, section 5.1