EU publishes MiFID II and MiFIR transaction reporting

The Council of the European Union has published the approved compromise text of the:

· proposed Markets in Financial Instruments Directive (MiFID II); and
· text of the proposed MiFID II Regulation (MiFIR).

Both documents are dated 17 February 2014.

MiFIR contains the extended transaction reporting requirements which apply to:
· all instruments traded on a trading venue; and
· financial instruments where the underlying is a financial instrument traded on a trading venue or where the underlying is an index or basket composed of financial instruments traded on a trading venue. The obligation applies whether or not such transactions were carried out on a trading venue.

The reports must identify the person who made the investment decision as well as those responsible for the execution of the trade. Double reporting is to be avoided and where a report made to a trade repository under EMIR contains all the required information, then a second report is not required.

Actions are assigned to the European Securities and Markets Authority under Article 23 to develop the regulatory technical standards to implement these obligations. The timetable for the delivery of these is not yet available.

On 19 February 2014, the Council announced that COREPER had approved the final compromise texts. The proposals will now have to be approved by the Parliament, so as to allow final adoption by the Council once the texts have been finalised in all languages.

Related link:
http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ecofin/141071.pdf