Price and Quantity Notation
Silent Errors in MiFID Reports
26 July 2023
In MarketWatch 74, released by the FCA in July 2023, the regulators encourage firms to adopt market conventions when specifying Price and Quantity notations within their MiFID transaction reports.
Industry Best Practices
Consistency in reporting Price and Quantity enables the regulators to conduct regulatory supervision more efficiently. In MiFID reporting, a Price specified as a Monetary value is vastly different from a Price specified as a Percentage value. This is precisely why regulators are encouraging market participants to adopt industry Best Practices when specifying Price and Quantity.
In MarketWatch 74, the FCA noted:
"In cases other than where a specific price or quantity type is required for the instrument traded (for example, credit default swaps (CDS) - price in basis points; equity - quantity in units), firms may determine the most appropriate notations to report. We urge firms to follow market convention when determining which notation to use. Where possible, firms should ensure that the notations selected are consistent with those reported by their counterparties. We have identified cases of the same transaction being reported using different price or quantity notations by firms facing one another. For example, one side using a monetary price and the other using a basis point price."
Qomply's solutions incorporate the Best Practices from across trade bodies and associations. This means that Price and Quantity notations are flagged if the notation deviates from market convention or Best Practices for that particular asset or product type.
About Qomply
Qomply takes away the pain by getting transaction reporting right the first time.
Qomply’s technology automatically executes a sophisticated matrix of rules and scenarios across reports from field-level to business-logic level. With thousands of validation rules, Qomply easily exceeds the 250 validation rules set forth by the regulators.
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This all leads to the fewest number of steps in the pipeline of reporting and ensuring reports are right the first time.
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