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COBS 11.5 Record keeping: client orders and transactions

Record keeping of client orders and decisions to deal

COBS 11.5.1EURP

An investment firm shall, in relation to every order received from a client, and in relation to every decision to deal taken in providing the service of portfolio management, immediately make a record of the following details, to the extent they are applicable to the order or decision to deal in question:

  1. (1)

    the name or other designation of the client;

  2. (2)

    the name or other designation of any relevant person acting on behalf of the client;

  3. (3)

    the details specified in point 4, 6, and in points 16 to 19, of Table 1 of Annex I;

  4. (4)

    the nature of the order if other than buy or sell;

  5. (5)

    the type of the order;

  6. (6)

    any other details, conditions and particular instructions from the client that specify how the order must be carried out;

  7. (7)

    the date and exact time of the receipt of the order, or of the decision to deal, by the investment firm.

[Note: article 7 of MiFID Regulation]

Record-keeping of transactions

COBS 11.5.2EURP

Immediately after executing a client order, or, in the case of investment firms that transmit orders to another person for execution, immediately after receiving confirmation that an order has been executed, investment firms shall record the following details of the transaction in question:

  1. (1)

    the name or other designation of the client;

  2. (2)

    the details specified in points 2, 3, 4, 6, and in points 16 to 21, of Table 1 of Annex I;

  3. (3)

    the total price, being the product of the unit price and the quantity;

  4. (4)

    the nature of the transaction if other than buy or sell;

  5. (5)

    the natural person who executed the transaction or who is responsible for the execution.

[Note: article 8(1) of MiFID Regulation]

COBS 11.5.3EURP

If an investment firm transmits an order to another person for execution, the investment firm shall immediately record the following details after making the transmission:

  1. (1)

    the name or other designation of the client whose order has been transmitted;

  2. (2)

    the name or other designation of the person to whom the order was transmitted;

  3. (3)

    the terms of the order transmitted;

  4. (4)

    the date and exact time of transmission.

[Note: article 8(2) of MiFID Regulation]

COBS 11.5.4EURP

Points 2, 3, 4, 6, 16 - 21 of Table 1 of Annex 1 of the MiFID Regulation

2.

Trading day

The trading day on which the transaction was executed.

3.

Trading time

The time at which the transaction was executed, reported in the local time of the competent authority to which the transaction will be reported, and the basis in which the transaction is reported expressed as Co-ordinated Universal Time (UTC) +/- hours.

4.

Buy/sell indicator

Identifies whether the transaction was a buy or sell from the perspective of the reporting investment firm or, in the case of a report to a client, of the client.

6.

Instrument identification

This shall consist of:

  • a unique code to be decided by the competent authority (if any) to which the report is made identifying the financial instrument which is the subject of the transaction;
  • if the financial instrument in question does not have a unique identification code, the report must include the name of the instrument or, in the case of a derivative contract, the characteristics of the contract.

16.

Unit price

The price per security or derivative contract excluding commission and (where relevant) accrued interest. In the case of a debt instrument, the price may be expressed either in terms of currency or as a percentage.

17.

Price notation

The currency in which the price is expressed. If, in the case of a bond or other form of securitised debt, the price is expressed as a percentage, that percentage shall be included.

18.

Quantity

The number of units of the financial instruments, the nominal value of bonds, or the number of derivative contracts included in the transaction.

19.

Quantity notation

An indication as to whether the quantity is the number of units of financial instruments, the nominal value of bonds or the number of derivative contracts.

20.

Counterparty

Identification of the counterparty to the transaction. That identification shall consist of:

  • where the counterparty is an investment firm, a unique code for that firm, to be determined by the competent authority (if any) to which the report is made;
  • where the counterparty is a regulated market or MTF or an entity acting as its central counterparty, the unique harmonised identification code for that market, MTF or entity acting as central counterparty, as specified in the list published by the competent authority of the home Member State of that entity in accordance with Article 13(2);
  • where the counterparty is not an investment firm, a regulated market, an MTF or an entity acting as central counterparty, it should be identified as 'customer/client' of the investment firm which executed the transaction.

21.

Venue identification

Identification of the venue where the transaction was executed. That identification shall consist in:

  • where the venue is a trading venue: its unique harmonised identification code;
  • otherwise: the code 'OTC'.