What is MiFID II Transaction Reporting?
While Brexit introduced some slight divergence between the UK and EU MiFIR transaction reporting requirements, most notably in the reportable instrument set, the EU and UK regimes are almost identical and serve the same purpose: to help regulators detect and prosecute market abuse.
Complying with the MiFIR transaction reporting regime has proved to be an onerous and complicated task for firms. In part, this is because of the sheer volume of regulation and guidance relating to the reporting requirement. Reports are required for all asset classes and comprise of up to 65 XML fields.
To meet the requirement of complete and accurate reports mandated by MiFIR, firms have to understand not just the regulation, but also the Regulatory Technical Standards (RTS), Guidelines and the continually evolving Q&A documentation from ESMA. This is not an easy task and the regulators are not noted for their tolerance of firms failing to comply.