SUP 17

Transaction reporting

SUP 17.1

Application

Who?

SUP 17.1.1

See Notes

handbook-rule
This chapter applies to:
(3) a person who is the operator of an approved reporting mechanism or of a regulated market or MTF that is used by a firm to report transactions to the FSA; and
(4) a firm acting in its capacity as a manager or operator of:
(a) a collective investment undertaking; or
(b) a pension scheme; or

SUP 17.1.2

See Notes

handbook-guidance
Article 32(7) of MiFID requires the FSA to apply the transaction reporting requirements in Article 25 to the UKbranches of EEA investment firms and branches of credit institutions in respect of reportable transactions arising in the course of services provided in the UK.

SUP 17.1.3

See Notes

handbook-guidance
Article 32(7) of MiFID provides that the branch of a UK firm operating from an establishment in another EEA state must satisfy the transaction reporting requirements of the competent authority in that other Member State in respect of reportable transactions arising in the course of services provided in that other Member State.

SUP 17.1.3A

See Notes

handbook-guidance
In line with guidance from CESR, the FSA acknowledges that, from a practical point of view, it would be burdensome for branches of investment firms to be obliged to report their transactions to two competent authorities. Therefore, all transactions executed by branches may be reported to the competent authority of the Host State, if the investment firm elects to do so. In these cases transaction reports should follow the rules of the competent authority to which the report is made. However, where an investment firm chooses to report to two competent authorities, this choice will not be challenged by the FSA .

What?

SUP 17.1.4

See Notes

handbook-rule
A firm which executes a transaction:
(1) in any financial instrument admitted to trading on a regulated market or a prescribed market (whether or not the transaction was carried out on such a market); or
(2) in any OTC derivative the value of which is derived from, or which is otherwise dependent upon, an equity or debt-related financial instrument which is admitted to trading on a regulated market or on a prescribed market;
must report the details of the transaction to the FSA .
[Note: article 25(3) of MiFID].

Where?

SUP 17.1.5

See Notes

handbook-rule
This chapter applies in respect of transactions which are to be reported to the FSA .

Status of EU provisions as rules in certain instances

SUP 17.1.6

See Notes

handbook-rule
In this chapter, paragraphs marked "EU", including SUP 17 Annex 1 EU, shall apply to a firm as if those provisions were rules to the extent that it executes a transaction in a financial instrument which is specified by SUP 17.1.4 R. but which is beyond the scope of article 25(3) of MiFID.

Guidance on the reporting of certain transactions

SUP 17.1.7

See Notes

handbook-guidance
(1) The movement, reallocation or transfer of financial instruments within the accounts of one legal entity will be reportable where the movement, reallocation or transfer is as a result of an agreement to transfer rights in a financial instrument to which this chapter applies between clients of the firm or between the firm (or a member of its group) and a client, and where the movement, reallocation or transfer involves a transaction within the meaning of Article 5 of the MiFID Regulation.
(2) For a rolling spread bet, only the initial opening of the betting contract and the final closure of the contract need to be reported. Openings and closings for technical purposes such as daily roll-over, which are intended to maintain a particular spread bet position, need not be reported. Final closings of a portion of a bet should be reported as required by SUP 17.2.7 R.

SUP 17.2

Making transaction reports

Transaction reports made through third party agents

SUP 17.2.1

See Notes

handbook-rule
A firm may rely on a third party acting on the firm's behalf to make a transaction report to the FSA .
[Note: article 25(5) of MiFID]

SUP 17.2.2

See Notes

handbook-guidance
The FSA will treat a firm as acting in accordance with SUP 17.2.1 R in circumstances where the firm enters into a transaction with another person in the course of providing a service of portfolio management on behalf of one or more clients, provided it:
(1) enters into the transaction in the exercise of a discretion conferred on it by an investment mandate or does so having specifically recommended the transaction to its client;
(2) has reasonable grounds to be satisfied that the other person will, in respect of the transaction, make a transaction report to the FSA (or to another competent authority) which, as to content, will include all such information as would have been contained in a transaction report by the firm (other than as to the identity of the firm'sclient).

Approved reporting mechanisms, regulated markets or MTFs

SUP 17.2.3

See Notes

handbook-rule
A firm is relieved of its obligation to make a transactionreport if the transaction is instead reported directly to the FSA by an approved reporting mechanism, or by a regulated market or MTF through whose systems the transaction was completed.
[Note: article 25(5) of MiFID]

SUP 17.2.3A

See Notes

handbook-guidance
The regulated markets and MTFs that report transactions undertaken on their systems to the FSA are listed on the FSA's website at: www.fsa.gov.uk/Pages/Doing/Regulated/Returns/mtr/liffe_feed/index.shtml.

Verifying that transaction reports will be made

SUP 17.2.4

See Notes

handbook-guidance
The FSA will expect a firm which seeks to rely upon the waiver in SUP 17.2.3 R to take reasonable steps to verify that transaction reports will be made in accordance with the standards laid down in this chapter and in particular should ascertain and remain satisfied that:
(1) the provider of the transaction reporting facility maintains an automated reporting system which the firm is able to access through the efficient inputting of transactions into the system;
(2) the terms of the agreement between itself and the relevant trade matching or reporting system, regulated market or MTF, make appropriate provision obliging the provider of the transaction reporting service to make transaction reports on its behalf;
(3) the arrangements provide for confirmation in each case that a transaction report has been made on its behalf.

Compliance byapproved reporting mechanisms or MTFs with the provisions of this Chapter

SUP 17.2.5

See Notes

handbook-rule
  1. (1) The operator of, an approved reporting mechanism, or the operator of an MTF or a market operator through whose systems a reportable transaction is to be completed and which has, pursuant to SUP 17.2.3 R, agreed to make transaction reports to the FSA on behalf of a firm, must:
    1. (a) make reports to the FSA in respect of each to which the agreement relates;
    2. (b) ensure such reports contain the reporting fields specified in SUP 17 Annex 1, where applicable; and
    3. (c) ensure that, once received from the reporting firm, such reports are submitted to the FSA within the time limit for making reports.
  2. (2) The obligations of the operator under this rule do not affect the liability of the reporting firm for ensuring the accuracy of the information contained in the transaction report that it submits to the operator.

SUP 17.2.6

See Notes

handbook-guidance
(1) A transaction report should distinguish each individual transaction, using the firm's identifying code.
(2) Reporting obligations under this chapter do not affect any obligation to report transactions under the rules of any market, trading system, matching or reporting system or exchange, whether or not that market, system or exchange is a regulated market.

Time period for making reports

SUP 17.2.7

See Notes

handbook-rule
A firm must report the required details of the transaction to the FSA as quickly as possible and by not later than the close of the working day following the day upon which that transaction took place.
[Note: article 25(3) of MiFID]

SUP 17.3

Reporting channels

SUP 17.3.1

See Notes

handbook-eu-text

Methods of a firm reporting transactions either directly or through a third party acting on its behalf

SUP 17.3.2

See Notes

handbook-guidance
A firm that proposes reporting to the FSA either directly or through a third party that is an approved reporting mechanism, should notify the FSA of its intention to do so, in order for the FSA to be able in particular to verify that the firm's or third party's technical arrangements for the submission of reports are consistent and compatible with the FSA's arrangements.

Approval and monitoring of trade matching and reporting systems

SUP 17.3.3

See Notes

handbook-eu-text

SUP 17.3.4

See Notes

handbook-guidance
The approved reporting mechanisms arelisted on the FSA's website at:http://www.fsa.gov.uk/pages/Doing/Regulated/Returns/mtr/arms/index.shtml.
[Note: These systems will be listed following the approval of a trade matching or reporting system].

SUP 17.3.5

See Notes

handbook-guidance
Section 412A of the Act contains provisions which are concerned with the manner in which the FSA will carry out its approval and monitoring of trade matching or reporting systems.

Receipt of transaction reports by the FSA

SUP 17.3.6

See Notes

handbook-guidance
A report is made to the FSA when it is received by the FSA . The delivery of a report by a MiFID investment firm to a reporting person, channel or system by the close of the working day following the day of the transaction does not amount to the making of a report to the FSA .

SUP 17.4

Information in transaction reports

Information to appear in transaction reports

SUP 17.4.1

See Notes

handbook-eu-text

SUP 17.4.2

See Notes

handbook-rule
The reports referred to in SUP 17.4.1 EU shall, in particular include details of the names and the numbers of the instruments bought or sold, the quantity, the dates and times of execution and the transaction prices and means of identifying the firms concerned.
[Note: article 25(4) of MiFID]

Data retention

SUP 17.4.3

See Notes

handbook-rule
A firm must keep at the disposal of the FSA , for at least five years, the relevant data relating to all transactions in financial instruments which it has carried out, whether on own account or on behalf of a client. In the case of transactions carried out on behalf of clients, the records shall contain all the information and details of the identity of the client, and the information required under the money laundering directive.
[Note: article 25(2) of MiFID]

Maintenance of information by firm

SUP 17.4.4

See Notes

handbook-guidance
The requirement to keep information at the disposal of the FSA means that a firm should maintain that information in such a form that it can readily be gathered and transmitted to the FSA upon request. Where more than one firm has given effect to a transaction, each firm should be considered to have carried out the transaction for the purposes of SUP 17.4.3 R and should keep the records, even where only one firm makes a transaction report as contemplated in this Chapter.

SUP 17 Annex 1

Minimum content of a transaction report

List of fields for reporting purposes
[Note: This table includes information required under MiFID Article 25(4) and contains additional FSA requirements permitted under Articles 13(3) and (4) of the MiFID Regulation]
Where appropriate, firms should complete these fields in the formats described, or these formats must be contained in the fields that their approved reporting mechanism will use when sending a transaction report to the FSA on behalf of a firm.