The counterparties of a bilaterally traded standard contract, concluded outside an organised market place (including the conclusion via Trayport) – sometimes referred to as OTC bilateral – decide to clear their trade on an exchange (Exchange executed). Which transactions have to be reported under REMIT to ACER? Are the data reporting obligations different in case a trade is concluded on a broker OMP platform and subsequently cleared (e.g. cleared products) on an exchange (the CCP or the integrated exchange).
According to Article 5 of the REMIT Implementing Regulation, market participants have the obligation to report all transactions, including orders to trade and bilateral trades.
With reference to the clearing of a bilateral trade concluded outside an organised market place, it shall be first reported to ACER within the timeline indicated in Article 7 of the REMIT Implementing Regulation. The transaction timestamp of such a trade shall refer to the moment when the trade is concluded.
If the counterparties decide to clear this trade on an exchange, the trade intended to be cleared should also be reported to ACER indicating the following information in the REMITTable 1 schema:
- Data Field (27) Organised market place ID / OTC shall be populated with the unique code of the exchange where the transaction is intended to be cleared.
- Data Field (30) Transaction timestamp shall indicate the timestamp of the clearing.
- Data Field (33) Linked order ID shall be reported with the value of “NA” to indicate that there was not any order visible to the market as indicated in the TRUM. Please note that “NA” is a value to be populated in the data field, i.e. it shall not be left blank.
- Extra field is expected to be populated with the flag CLR in order to flag the cleared trade.
Population of the Extra field in the electronic format:
Schema Table 1_V1:
Schema Table 1_V2:
Schema Table 1_V3:
Please note that, schema Table 1_V3 allows the patterns of reporting for Schema Table 1_V2 but can also be used without having to report a second key==value pair.
With reference to trades concluded on a broker OMP platform and intended to be subsequently cleared on an exchange, ACER expects to receive:
- orders to trade inserted on the broker OMP platform together with the relevant lifecycle events;
- the subsequent trade concluded on the broker OMP platform, as well as any relevant lifecycle events (the lifecycle event reporting of trades shall be in line with the transaction reporting guidance provided in Annex VII to the TRUM);
- Once the trade is cleared on the exchange, if not already reported under EMIR, the cleared trade is expected to be reported to ACER by providing the same information as indicated above for Data Field (27), (30), (33) and the Extra field.
Further information on trades cleared on an exchange is available in FAQ 2.4.9, while reporting examples are available in Annex II to the TRUM.