BREXIT FIRDS CHANGES

March 9, 2021

Following the end of the Brexit transition period, as of 11pm on the 31.12.2020 ESMA have removed all instruments listed only in the UK from their FIRDS database.

All instruments listed only in UK, which were still active, were terminated in ESMA FIRDS published on 04.01.2021.

Control Now has analysed the ESMA delta files – this accounted for around 7.8 million unique ISINs terminated on 31.12.2020 – compared to 8-10k unique ISINs terminated on a last day of 2019 and 2018.

Please find ESMA statement regarding FIRDS update and Instrument Coverage in FCA FIRDS.

FIRDS databases as of 2021 contain:

Instrument Admitted in EU only Admitted in UK only Admitted in EU and UK
ESMA FIRDS Yes No Yes
FCA FIRDS Yes Yes Yes

 

Changes to FIRDS will affect MIFIR Reporting obligations, i.e. instruments listed only on UK markets that are reported to EU NCA before the end of 2020 are no longer reportable. They are likely to be flagged with errors CON-412 (Instrument ID code) and CON-472 (Underlying ID code).

The difference between ESMA and FCA FIRDS databases will grow even further as later in February, upon the mutual equivalence decision for share trading obligation between UK and Switzerland we started seeing Swiss shares being admitted to trading on UK venues – therefore appearing in FCA FIRDS.

FIRDS changes do not affect EMIR Reporting obligation, however due to changes to the scope of ESMA entities list – nearly 600 OTPs (Regulated Markets, MTFs, OTFs and SIs) have been removed from this list as of 04.01.2021, and ESMA is now expecting the transactions executed on them to be reported as OTC.

 

 About Control Now

Control Now is an innovative technology driven regulatory reporting assurance company.  Founded in 2017 by Murray Abel & Iyad Maswadi, who between them have 15+ years of regulatory and technical experience which has been combined to bring to market SaaS driven technology tools to help the financial community navigate the post reporting assurance market.  We cover several global jurisdictions, including MiFID II, EMIR, SFTR, ASIC amongst other regulations.  Our unique tools and partnership approach has given our clientele confidence in their reporting integrity.  https://control-now.com/about/