MiFID II/MiFIR order flagging requirements: Amendments to reports TR160, TR161, introduction of reports TR167, TR168

Release date: 26 Apr 2022

018/2022 MiFID II/MiFIR order flagging requirements: Amendments to reports TR160, TR161, introduction of reports TR167, TR168Xetra Circular 018/22

1. Introduction

With T7 Release 10.1 on 27 June 2022, Frankfurter Wertpapierbörse (FWB, the Frankfurt Stock Exchange) will provide Trading Participants with two new daily reports, “TR167 Non-Uniqueness Identifier” and “TR168 Non-Consistency Identifier.” 

The new reports provide an overview of the Trading Participants’ short/long code registrations, that are non-unique or non-consistent in order to support compliance with the regulatory requirements. The reports TR167 and TR168  may be used in future as the basis for sanctioning measures. These reports will be provided in addition to the existing short code reports TR160, TR161, and TR166.

In addition, the existing reports TR160 and TR161 will be enhanced with additional fields to better enable Trading Participants to identify affected records. In this context, the error code logic for short code/long code uploads will also be enhanced to provide Trading Participants with more precise information about the issue(s) triggering the error codes.

Introduction date in Simulation: 2 May 2022
Introduction date in Production: 27 June 2022

2. Required action

Please retrieve your functional and technical documentation from the Xetra website www.xetra.com.

Functional documentation in the updated reporting handbook “Information handbook for audit trail, transaction and other regulatory reporting under the MiFID II/MiFIR regime” available under:

Newsroom > Current regulatory topics > MiFID II and MiFIR > Reference data reporting

Technical documentation is available under:

Technology > T7 trading architecture > System documentation > Release 10.1 > Reports

3. Details

A. New reports

Report TR167

The new report "TR167 Non-Uniqueness Identifier" will be made available to Trading Participants at Frankfurt Stock Exchange on a daily basis.

The report contains all short code/long code mappings valid on the report date for which two or more short codes have been registered to the same long code (i.e. the non-unique mappings). In addition, for each mapping the “Valid From”, ”Valid To”, “Upload Date”, and the “Classification Rule” as well as the “National ID Country Code” and “National ID Priority” are provided. 

The report supports Trading Participants in complying with their obligation to maintain only unique short code/long code mappings and/or with the conditions of any exemption they may have been granted, as applicable.

Report TR168

The new report "TR168 Non-Consistency Identifier" will be made available to Trading Participants at Frankfurt Stock Exchange on a daily basis.

The report contains all short codes for which the long code assigned has changed since the previous trading day (T-1) as a result of the Trading Participant having sent a modification message for that short code to the exchange. For each affected short code, the report shows:

  • The previous long code, as well as the “Valid From”, “Valid To”, “Classification Rule”, “National ID Country Code” and “National ID Priority” for the previous mapping.
  • The new (currently valid) long code, as well as the new “Valid From”, “Valid To”, “Classification Rule”, “National ID Country Code” and “National ID Priority”.

The report supports Trading Participants in complying with their obligation to maintain consistent/stable short code/long code mappings, i.e. to alter mappings solely for legally permissible reasons.

B. Enhancements to reports TR160 and TR161

The following additional fields will be added to the TR160 Report:

  • TraderID
  • SessionID
  • Free text fields 1/2/4

The following additional fields will be added to the TR161 report: 

  • NationalIDPriority
  • NationalIDCountryCode

The addition of the above fields is intended to allow Trading Participants to better identify their affected records.

C. Enhancements to error code logic

Error Code 26 “No existing short code registration to delete” will be added to the short code processing logic. This error code is triggered where a record with Status Indicator “D” for deletion is sent to the trading venue, but no corresponding valid record exists in the short code database. The error code results in a reject of the deletion record.

D. Legal basis

Since 3 January 2018, all Trading Participants have been required to identify, as appropriate, the natural persons, legal persons and/or trading algorithms responsible for the execution decision and investment decision behind each order/quote, as well as the natural or legal person client behind the order/quote (Article 48(10) of Directive 2014/65/EU, Article 25(2-3) of Regulation (EU) 600/2014). These requirements were incorporated in the Exchange Rules of the Frankfurter Wertpapierbörse: (§ 114).

Where the fields “execution decision”, “investment decision” and “clientID” are to be populated with the identifiers for natural or legal persons, these fields in orders/quotes are to be filled using the “short code” solution. Since 1 January 2022, Trading Participants have been obliged under § 114 of the Exchange Rules of FWB to maintain only unique short code/long code mappings and/or to seek an appropriate exemption from the Management Board of FWB. In addition, since that date members have also been obliged to only alter registered short code/long code mappings for legally permissible reasons.

We would like to remind Trading Participants that breaches of these obligations may be subject to disciplinary action from the Sanctions Committee of Frankfurt Stock Exchange.

Further information

Recipients:

All Xetra® Members and Vendors

Target groups:

Traders, Technical Contacts, Security Administration, System Administration, Nominated Persons, General, Compliance Departments

Contact:

Your Key Account Manager or client.services@deutsche-boerse.com; for regulatory questions: Regulatory Processing, regulatory.processing@deutsche-boerse.com, 
tel. +49-69-211-1 58 58, for technical questions your Technical Key Account Manager or cts@deutsche-boerse.com

Related circular:

 

Xetra Circular 074/21

Web:

www.xetra.com

Authorised by:

Frank Hoba, Annette Czypull (on behalf of the Management Board)