Over-reporting of transactions will no longer be tolerated under Mifid II
Identifying which instruments are
reportable under Mifid II may prove challenging because of
increased complexity and the absence of a golden source,
experts have warned.
Under the proposed Mifid II regulation,
firms on both the buy- and the sell-side have to report
front-office information on trades in near-real time as well as
transaction data from the middle and back office.
The scope of instruments reportable under
the incoming regulation has increased and the amount of data
points that has to be provided out for each individual trades
has been increased from 26 fields under Mifid I to 65 fields
under Mifid II.
The combination of having to report more
information and in near real-time is making the reporting
requirements under Mifid II a significant challenge for
"The complexity behind the regulation is
in deciding whether the instrument is reportable under Mifid
II, as well as who is responsible for the reporting and whether
the information should be reported in real-time or whether
there is time for a deferral," said Geoffroy Vander Linden,
head of business development for post trade at Trax, a
subsidiary of MarketAxess, a fixed income trading firm.
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