On 8 July 2020, the European Securities and Markets Authority updated its Q&As on MiFIR data reporting.
A new Q&A in the transaction reporting section has been added dealing with algorithmic trading. The new Q&A answers the following question:
Consider a scenario where an Investment Firm A executes a reportable transaction through an execution algorithm provided by another Investment Firm B.
- a) How should field 59 (Execution within firm) of RTS 22 be reported when Investment Firm A uses the execution algorithm provided by Investment Firm B?
- b) Would Investment Firm A’s reporting differ if Firm B was not a MiFID II Investment Firm and therefore did not have the obligation to report this transaction under Art. 26 MiFIR?