What is MiFID II Transaction Reporting?
Transaction reports are a key tool for regulators to detect and prosecute market abuse.
The revamped version of the Markets in Financial Instruments Directive (MiFID), is designed to offer greater protection for investors and inject more transparency into all asset classes. The reporting obligation went live in January 2018.
Some of the differences between MiFID I and II transaction reporting are:
- MiFID II captures all asset classes – MiFID I only caught equity and debt related instruments
- FX, commodity and interest rate derivatives are now potentially reportable under MiFID II
- Number of data fields has increased from 23/24 to 65 XML fields
- EEA new reference data standards – eg. Legal Entity Identifiers (LEIs) replace BICs and FRNs
- Change in the definition of entities brought within scope.