MIFIR Q&A Update: SE NP ID & New reporting scenario

September 28, 2020

ESMA today have released a new Q&A on MiFIR data reporting.

They have made the following clarifications for MiFIR transaction reporting (RTS 22);

  • Swedish nationals: requirement to submit a 12 digit identifier for personal identify number.
  • New reporting scenario: counterparty acts as market and client side.

Q&A changes include;

Ref Q&A Section Title Value Before Value After
1 LEI of the issuer 6. LEI of funds

[CN 25.01]: RTS 23

n/a – new question Q. In case of a financial instrument issued by a fund, e.g. Alternative Investment Fund (AIF); collective investment undertaking (CIU), other unincorporated funds; which LEI code should be reported in the field 5 (Issuer or operator of the trading venue identifier) of RTS 23 and related RTS and ITS under MAR Article 4?

A: The LEI of the fund should be reported in field 5 of RTS 23 and related RTS and ITS under MAR Article 4.

2 Transaction Reporting 2. National client identifiers for natural persons

[CN 25.01]: RTS 22

Sweden: Personal identity number

Personal code number: 12 digits numerical in the format CCYYMMDDZZZQ
CCYYMMDD is the date of birth, ZZZ the individual serial number, and Q is the control character (calculated with Luhn-algoritm). The individual number ZZZ is odd for males and even for females. CC is century, YY year, MM month and DD day.

Personal identity number is used for unique personal identification and are written on or into various personal documents such as passports, health care cards, driver’s licenses, and is held by authority registration at Swedish tax agency.

Sweden: Personal identity number

Personal identity number: 12 digits numerical in the format CCYYMMDDZZZQ

CCYYMMDD is the date of birth, ZZZ the individual serial number, and Q is the control character (calculated with Luhn-algoritm). The individual number ZZZ is odd for males and even for females. CC is century, YY year, MM month and DD day.

NB! The 12 digits numerical format is used, as the official 10 digits numerical format of the personal identity number includes a separator (YYMMDD-ZZZQ or YYMMDD+ZZZQ if the person has turned 100) which severely complicates data processing and storage.

Personal identity number is used for unique personal identification. This number, in its official 10 digits numerical format (i.e. excluding the CC for century and including a separator), is written on or into various personal documents such as passports, health care cards, and driver’s licenses.

3 Transaction Reporting 13c. Algorithm trading

[CN 25.01]: RTS 22

n/a – new question Consider a scenario where an Investment Firm A executes a reportable transaction through an execution algorithm provided by another Investment Firm.

 

Q. Where Investment Firm B is using Investment Firm A’s membership to access the market, is Investment Firm B executing the transaction and does Investment Firm B have to transaction report?

A. Yes. Investment Firm B is conducting the activity of executing a client order according to Art. 3 of RTS 22. The scenario is:

IF A → IF B (algorithm) → IF A (membership) → CCP (Trading Venue)

Assuming that both Investment Firm A is buying an instrument and dealing on own account and the subsequent steps in Investment Firm B and A are in “any other” trading capacity, the respective reports should be completed as per the table below.

In order to match Investment Firm B’s reports and reflect its involvement in more than one part of ‘the chain’, Investment Firm A has to submit two reports:

• one for its trade as a client with Investment Firm B (Report 1).
• one for its market-side trade with the Central Counterparty or another Investment Firm (Report 2).

https://www.esma.europa.eu/press-news/esma-news/esma-updates-qa-mifir-data-reporting-8

Control Now Ltd, founded in 2017, is a provider of Transaction Reporting Assurance software tools to empower market participants to perform oversight of their Regulatory Reporting Processes. Control Now Ltd provide TR Accuracy (Data Quality Assurance) and TR Completeness (Reconciliations) services. Please get in touch for a Free Health Check –