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Derivative transactions conducted through derivative exchange platforms are on-exchange instruments traded off order book and should be reported accordingly. This applies regardless of whether those derivatives are fungible or differ in any characteristics from an exchange standardised instrument.
The current guidance states that when a transaction conducted through an exchange platform is in a derivative instrument which differs in any characteristics from an exchange standardised derivative, the transaction must be reported as an OTC derivative transaction.
Following consultation with firms, trade bodies and exchanges, we are revising our guidance in order to:
• provide clearer and simpler guidance that removes the need to distinguish between transactions for fungible and non-fungible derivative instruments conducted through exchange platforms;
• provide guidance that reflects more accurately the status of the transactions and is easier for firms to integrate into their transaction reporting systems; and
• extend the guidance from just Aii derivative transactions to all derivative transactions (ISIN and Aii) conducted through EEA derivative exchange platforms.
Proposed guidance
1. This guidance applies to all derivative transactions conducted through derivative exchange platforms, regardless of whether those derivatives are fungible or differ in any characteristics from an exchange standardised instrument.
2. The above derivatives are on-exchange instruments traded off order book and should be reported accordingly as set out below.
3. The date and time of the transaction should be the date and time that the transaction was accepted by the exchange platform.
Full Proposed guidance