Client Info‎ > ‎

MIFID II

On 3 January 2018, a new Directive 2014/65/EC (“MiFID II”) and Regulation (EU) No 600/2014 (“MiFIR”) become effective, introducing significant changes to the transaction reporting (“MiFIR Transaction Reporting”) framework that was created in 2007 with the Markets in Financial Instrument Directive (“MiFID I”).

Affected clients will need to provide additional information to Global Capital  in order to continue trading through their accounts when the new reporting requirements become effective on 3 January 2018. Global Capital  will be requesting the required information electronically to facilitate its collection.

Scope of MiFIR Transaction Reporting Obligations

MiFIR Transaction Reporting applies to European Economic Area (“EEA”) Investment Firms and also to EEA Investment Firms affiliates to execute orders. As a client of Global Capital that uses our platform, you may be required to provide additional information to allow the proper transaction reports to be filed.

EEA Investment Firms are obliged to report complete and accurate details of transactions executed in financial instruments covered by MiFIR to the relevant National Competent Authority (“NCA”) no later than the close of the next day.

MiFIR has widened the scope of reportable financial instruments to cover those that are traded on EEA Regulated Exchanges, Multilateral Trading Facilities (“MTFs”) and Organised Trading Facilities (“OTFs”). In addition to transactions executed on EEA exchanges, MiFIR will capture Over The Counter (“OTC”) transactions and transactions of EEA listed financial instruments that are executed on non-EEA trading venues, e.g. a stock listed on the LSE traded on NYSE. (see financial instruments covered by MiFIR).

Information to Be Reported
The reporting fields have increased from 23 under the MiFID I regime to 65 under MIFIR. The new information requirements now include, among other items:

  • Detailed identification of the buyer and the seller for each transaction. In particular, the Regulation requires the provision of Legal Entity Identifiers (“LEI”) for legal entities and National Identifiers for natural persons (based on their countries of citizenship).
  • Identification of the Decision Maker for the buyer and the seller when a third-party exercises discretion:
    • > A person other than the account holder on an individual or joint account, or a third-party entity.
    • > A third-party other than the authorised traders on the account for an organisation account (e.g. a Financial Advisor trading for its clients’ subaccounts).

    • This information is not required where the account holder is self-trading or where authorised traders are trading for their own organisation.
Identification of the person or algorithm that is responsible at the reporting firm for making the investment decision or for the execution of a transaction. This information is required for EEA Investment Firms that use our reporting services.
For Commodity Derivatives Transactions, an indication as to whether such Commodity Derivatives Transactions reduce risk in an objectively measurable way in accordance with Article 57 of MiFID II; This is applicable to organisation accounts only when the holder is a non-financial entity.

You can visit here for more details Regulation (EU) No 600/2014 .