MiFID requires transactions of all instruments admitted to trading on a Regulated Market to be reported to the local competent authority. The 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 FSAâs 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 that the transaction details have been accepted by the Omgeo host. A batch process is run nightly and the dayâs transactions are collated and sent to the appointed regulatory body.
Traditionally this process has been undertaken by broker/dealers on behalf of their investment manager clients; however more and more investment managers are now discovering that they have reporting requirements for internally crossed transactions, or for those transactions executed by non-EEA brokers trading in dual listed instruments admitted to EEA regulated markets.
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 minimised by reducing errors inherent in manual and verbal communications such as phone calls, email and faxes.
Steve Matthews, Managing Director, Product, at Omgeo commented, âMiFID compliance is a huge task for our clients, and we are confident that with the updated version of Omgeo Transaction Report we can alleviate some of the pain of regulatory reporting. By automating their transaction reporting, firms can be assured that same-day transmission of transaction reports is taken care of, meeting the MiFID T+1 deadline.â