Question 2.3.2

Futures trades on exchanges can cascade. Are cascades reportable?

Example: Participant executes a futures trade on an exchange.Trade goes into delivery, resulting in the creation of one or more physical trades by the exchange.

Cascaded trades are not reportable because the original futures trade will have been reported by the participant.

Answer

Please see the TRUM and Annex III to the TRUM which already clarify what it is a reportable transaction. Cascade trades are post-trade events and not reportable because the original futures are reported by the participant. Cascade trades are not transactions in the REMIT sense. This is in line with the meaning of entering into transaction according to Article 5 of MiFID I where the meaning of entering into transaction does not include actions related to option exercise, settlement or clearing.