Markets in Financial Instruments Directive (MiFID) require transactions of all instruments admitted to trading on a Regulated Market to be reported to the local competent authority. The Financial Services Authority (FSA) extends the UK regime to include commodity, interest rate and foreign exchange derivative contracts. Each transaction must be reported to the competent authority by no later than the close of business on the following day. Omgeo Transaction Report will report all types of transactions by T+1 to meet the FSA’s Full Approval requirements.
The key trade details – such as counterparty, client, security identifiers, security type, price and quantity of securities, currency and relevant dates – are entered into Omgeo Transaction Report and sent on to the Omgeo host for validation. Once validated, the client receives an acknowledgement confirming the transaction details have been accepted by the Omgeo host. A batch process is run nightly and the day’s transactions are collated and sent to the appointed regulatory body.
By automating the reporting process, firms can ensure same-day transmission of transaction reports to the FSA and/or the LSE efficiently and in a timely manner. As trade information is routed to the FSA for monitoring, security is increased and there is a reduced risk of fraudulent activity in the market. Reporting costs and operational risk are minimized by reducing errors inherent in manual and verbal communications such as phone calls, email and faxes.
