Regulatory Reporting | MiFID II Post-Trade Transparency Reporting

What is MiFID II Post-Trade Transparency Reporting?

First introduced in 2007 and revised in 2018, the EU and UK's Markets in Financial Instruments Directive (MiFID II) aims to enhance market resilience, transparency, and investor protection. Under MiFID II Post-Trade Transparency Reporting, investment firms must provide complete and accurate trade details to an Approved Publication Arrangement (APA) for publication.

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Former regulator, Sophia Fulugunya, discusses the challenges firms face with Trade Reporting requirements.

About MiFID II Post-Trade Transparency

To promote market resilience and transparency, MiFID II outlines a series of Articles and technical standards which must be adhered to; these apply to all EU trading venues (RM, MTF, OTF), SIs and UK equivalents.

Post-Trade Transparency Reporting is outlined in RTS 1 and RTS 2 of MiFIR:

  • Near real-time market reporting via the Financial Information eXchange (FIX)
  • Reports to be sent to the APA within 1-min for equity (and equity-like products) and within 5-min for non-equity products
  • 20+ Required fields such as Trading Date and Time, ISIN, Price, Venue of Execution and more

These reports are then anonymised, aggregated and published by the APA with the ultimate goal being to promote transparency between market participants.

The regulation is the responsibility of the European Securities and Markets Authority (ESMA) and is enforced in the UK by the Financial Conduct Authority (FCA). With the advent of Brexit, since 2021, the two regulators are increasingly diverging, releasing a series of consultation papers detailing the region-specific differences in reporting.

FAQ: MiFID II Post-Trade Transparency

Post-Trade Transparency under MiFID II mandates that all details of securities transactions are made public immediately after the trade is executed. This includes price, volume, and timing, ensuring that the financial markets operate more openly and fairly.
All market participants, including investment firms, trading venues, and sell-side entities, are required to report post-trade transaction details. This applies to any financial instruments traded on EU-regulated markets, multilateral trading facilities, organized trading facilities, and certain over-the-counter transactions.
Enhanced Post-Trade Transparency helps increase market integrity by providing investors with timely and accurate trade data, fostering better market surveillance, and promoting more informed investment decisions, thereby protecting investor interests and improving market confidence.
Reports must be submitted to an Approved Publication Arrangement (APA) and include comprehensive details such as the financial instrument, the price, the quantity, and the execution time of the trade. This information is then aggregated and published to ensure accessibility and transparency to all market participants.
APAs play a critical role in MiFID II by collecting and disseminating trade reports. They ensure that trade information is standardized and published in a manner that is accessible and useful to the public and market participants, enhancing market transparency and aiding in regulatory oversight.
A post-trade transparency report under MiFID II must include the type of financial instrument, the quantity traded, the execution time, the price, and the identity of the trading venue. This detailed reporting ensures that all market participants have a clear and comprehensive view of trading activity, fostering greater market transparency.

Rely On Qomply To Help

Qomply has a variety of solutions to help firms comply with their regulatory MiFID II Post-Trade Transparency Reporting requirements:

Quality Assurance for Transaction Reports Post-Trade Diagnostic Auditor - Ensure Reports Are Accurate
Apply 100+ accuracy, scenario-level and best practice checks across your Post-Trade Transparency Reports in a click and comply with MiFID II requirements
QomplyEngine generates mifid transaction reports QomplyEngine - Generate Transaction Reports From Raw Data
Builds transaction reports from raw data points and save resources and hassle by offloading transaction report generation
Find reportable ISINs ISIN Quest - Find ISINs Instantly
Improve your MIFID reporting by easily retrieving reportable ISINs for your transactions through Qomply's ISIN Quest.

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