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MiFID II 

Data consolidation 

01 December 2011

Impact Amber traffic light Medium impact, some systems changes necessary and additional reporting requirements

Other areas to consider

Trade reporting, Transaction reporting

Current MiFID rules

N/A

FSA rules

N/A

Proposed changes
Draft directive
Articles 27, 61-68 Draft Regulation Articles 11 and 12

The Commission identified in its December 2010 consultation a number of issues with the reporting and publication of trade data in shares.  For example, the quality and format of the information is inconsistent, and there are difficulties in consolidating the data.

The draft Directive therefore:

  • requires all persons that operate an approved publication arrangement, a consolidated tape provider or an approved reporting mechanism to obtain prior authorisation from their home state regulator (unless such services are provided by a market operator).
  • MiFID requires all firms that execute transactions outside a trading venue (e.g. regulated market, MTF or OFT) to publish their trade reports through an Approved Publication Arrangement.
  • requires the selling of unbundled pre- and post-trade data (to bring down its cost).
  • provides for the establishment of a mandatory European consolidated tape.
  • requires each execution venue to make available to the public, without any charge, data relating to the quality of execution of transactions on that venue on at least an annual basis.
  • requires firms to summarise and make public on an annual basis for each class of financial instruments, the top five execution venues where they executed client orders in the preceding year.

ESMA is tasked with developing draft regulatory technical standards to specify content and format of information to be published by execution venues and firms respectively.

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