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SUP 17.1 Application

Who?

SUP 17.1.1R

1This chapter applies to:

  1. (1)

    a MiFID investment firm;

  2. (2)

    a third country investment firm; and to

  3. (3)

    a person who is the operator of an approved reporting mechanism or of a regulated market or MTF that is used by a firm to report transactions to the FCA; and

  4. (4)

    a firm acting in its capacity as a manager or operator of:

    1. (a)

      a collective investment undertaking; or

    2. (b)

      a pension scheme; or

    3. (c)

      an occupational pension scheme; or

    4. (d)

      a personal pension scheme; or

    5. (e)

      a stakeholder pension scheme.

SUP 17.1.2G

1Article 32(7) of MiFID requires the FCA to apply the transaction reporting requirements in Article 25 to the UK branches of EEA investment firms and branches of credit institutions in respect of reportable transactions arising in the course of services provided in the UK.

SUP 17.1.3G

1Article 32(7) of MiFID provides that the branch of a UK firm operating from an establishment in another EEA state must satisfy the transaction reporting requirements of the competent authority in that other Member State in respect of reportable transactions arising in the course of services provided in that other Member State.

SUP 17.1.3AG

2In line with guidance from CESR, the FCA acknowledges that, from a practical point of view, it would be burdensome for branches of investment firms to be obliged to report their transactions to two competent authorities. Therefore, all transactions executed by branches may be reported to the competent authority of the Host State, if the investment firm elects to do so. In these cases transaction reports should follow the rules of the competent authority to which the report is made. However, where an investment firm chooses to report to two competent authorities, this choice will not be challenged by the FCA.

What?

SUP 17.1.4R

1A firm which executes a transaction:

  1. (1)

    in any financial instrument admitted to trading on a regulated market or a prescribed market (whether or not the transaction was carried out on such a market); or

  2. (2)

    in any OTC derivative the value of which is derived from, or which is otherwise dependent upon, an equity or debt-related financial instrument which is admitted to trading on a regulated market or on a prescribed market;

must report the details of the transaction to the FCA.

[Note: article 25(3) of MiFID].

SUP 17.1.4AR

3SUP 17.1.4 R (2) does not apply to a transaction in any OTC derivative the value of which is derived from, or which is otherwise dependent upon, multiple equity or multiple debt-related financial instruments except where the multiple financial instruments are all issued by the same issuer.

Where?

SUP 17.1.5R

12This chapter applies in respect of transactions which are to be reported to the FCA.2

Status of EU provisions as rules in certain instances

SUP 17.1.6R

1In this chapter, paragraphs marked "EU", including SUP 17 Annex 1 EU, shall apply to a firm as if those provisions were rules to the extent that it executes a transaction in a financial instrument which is specified by SUP 17.1.4 R. but which is beyond the scope of article 25(3) of MiFID.

Guidance on the reporting of certain transactions

SUP 17.1.7G
  1. (1)

    1The movement, reallocation or transfer of financial instruments within the accounts of one legal entity will be reportable where the movement, reallocation or transfer is as a result of an agreement to transfer rights in a financial instrument to which this chapter applies between clients of the firm or between the firm (or a member of its group) and a client, and where the movement, reallocation or transfer involves a transaction within the meaning of Article 5 of the MiFID Regulation.

  2. (2)

    For a rolling spread bet, only the initial opening of the betting contract and the final closure of the contract need to be reported. Openings and closings for technical purposes such as daily roll-over, which are intended to maintain a particular spread bet position, need not be reported. Final closings of a portion of a bet should be reported as required by SUP 17.2.7 R.