Transaction reports
MiFID II / MiFIR has changed the reporting of transactions by investment firms and trading venues considerably. The objective of the new rules for transaction reporting is to obtain better insight into the trading behaviour of market participants and to improve the detection of market abuse.
Obligations for investment firms and trading venues
Investment firms must disclose the details of the transactions that they have executed in financial instruments (and all instruments derived from financial instruments) that are traded or admitted to trading on a trading venue (regulated market, MTF or OTF), regardless of the place of execution. Investment firms can report their own transaction information, but they can also do this via a company that acts as an Approved Regulatory Mechanism (ARM). They can also report via a trading venue of which the systems were used to execute the transaction.
Trading venues are responsible for reporting transactions on their venues for members who are note investment firms. This information must be reported completely and accurately and as quickly as possible to the supervisor (in any case no later than at the end of the following working day).
The above-mentioned obligation for investment firms does not only apply to the execution of orders, but also to accepting and transmitting orders and taking investment decisions. Furthermore, it is required to provide the client's personal details per transaction. For natural persons, the notification must include a national passport number. If the customer does not have a passport, a national identification number must be used, and if the customer does not have this either the final possibility is a so-called CONCAT. A legal entity identifier (LEI) must be used for legal entities. This can lead to a considerable effort on the part of investment firms and trading venues and customers might also be expected to take part in the process.
Northern TRS
In the collaborative project ‘Northern TRS’ (NTRS), the supervisors of Denmark, Finland, the Netherlands and Sweden develope a new system that meets the requirements of MiFID II to receive the reports and if necessary to send these on to other foreign supervisors.
Registration NTRS-system
You must register with the AFM to go through the certification process for your transaction reporting system and thus test your access to the reporting system of the AFM. You can submit an application to register using the English language form via the link alongside.
The Technical guide contains specifications needed for Submitting Entities to connect and report to the transactions reporting system used by the AFM for the MiFIR transaction reporting.
Notification of incidents
It may happen that errors occur when transactions are reported. As soon as you detect that something went wrong or incorrect information was provided, and this error was not rectified the same day, the AFM requires you to make a notification without delay. This means that you should not wait until you have found the underlying cause or until the incident has been resolved. You must notify the AFM of incidents via the MiFIR incident report. Please share as much relevant information as possible, insofar this information is available at the time.
We expect you to update us as soon as you can share new findings, when you think you will need more time, or when the incident has been resolved. We will send you a confirmation of receipt. If there is reason to do so, we will contact you directly.