Regulatory Reporting | MiFID II Transaction Reporting

What is MiFID II Transaction Reporting?

MiFID II Transaction Reporting is a regulatory framework in the EU and UK that requires investment firms to submit complete and accurate transaction details to their competent authorities by the end of the following working day.

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Former FCA regulator, Sophia Fulugunya discusses the challenges firms face with MiFID II Transaction Reporting requirements.

About MiFID II

The Markets in Financial Instruments Directive (MiFID II) came into effect on 3 January 2018 across the EU and UK. Its introduction marked one of the most comprehensive financial regulations since the 2008 financial crisis. This new transaction reporting regime replaced the initial MiFID introduced in 2007 and was viewed as far more thorough yet complex.

MiFID II's primary objective is to provide regulatory authorities with comprehensive data on financial transactions related to instruments listed on trading venues and those executed with an SI. For EU MiFIR, this applies to EU trading venues (RM, MTF, OTFs) and SIs whilst for the UK equivalent, it applies to instruments traded on UK, EU and Gibraltar trading venues and SIs. This data enables regulators to conduct market surveillance, monitor systemic risk, and ultimately protect investors.

The most commonly-referenced section of MiFIR is Article 26(1) that clearly outlines the requirement for reporting firms to submit complete and accurate details of reportable transactions by the next business day.

European Securities and Markets Authority (ESMA), is responsible for the regulation whilst it’s counterpart, the Financial Conduct Authority (FCA), supervises the regime in the UK post-Brexit. Since 2021, there have been a number of consultation papers released by the two regulators regarding revisions to MiFID II that points towards a divergence between the two regulators.

ESMA has been first of the two to provide concrete changes and on 27 March 2024 released a formal Public Statement announcing a move to formally apply the findings of their MiFID review with a series of substantive changes.

This is a clear indication that MiFID II and its successor will continue to pose challenges for firms.

Rely On Qomply To Help

Qomply has a variety of solutions to help firms comply with their regulatory MiFID transaction reporting requirements as mandated under RTS 22, Article 15 of MiFIR:

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
Quality Assurance for Transaction Reports Diagnostic Auditor - Ensure Reports Are Accurate
Apply over 1,000 accuracy checks and scenarios across your Transaction Reporting in a click and comply with RTS22, Article 15 of MiFIR Testing
Reconcile MiFID Transaction Reports Trade Reconciliation - Ensure Front-Office Data Matches Data Sent to Regulator
Ensure reports are complete and reconcile with data sent to regulator. Instantly reconcile large data sets in seconds and comply with RTS22, Article 15 of MiFIR Reconciliation
QomplyDirect send reports directly to the FCA QomplyDirect - Submit Reports Directly to Regulator
Send Transaction Reports directly to the regulator bypassing the need to use an ARM thus reducing costs and improving efficiency
Outsource your MiFID Report Operations Qomply Managed Services - Delegate Your Transaction Reporting Operations to Qomply
Qomply Managed Service alleviates the burden of technical expertise but also provides peace of mind that regulatory requirements are being met in a risk-free and cost-effective manner

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