As the prospect of a no-deal Brexit looms, how will it affect your financial trades and transactions?
The countdown to New Year’s Eve is on and Brexit is imminent. If the United Kingdom (UK) leaves the European Union (EU) without an agreement (no-deal Brexit), it is important to ensure transaction reports are submitted to the correct Trade Repository (TR) and/or Approved Reporting Mechanism (ARM). There has been no sign of a Brexit deal yet so at this stage, we are helping you prepare for a ‘worst-case scenario’. Regardless of what happens, your NCA will expect you to manage your EMIR, MiFIR and SFTR requirements.
Where Are You Currently Reporting Your Trades/Transactions to?
European investment firms (e.g. those regulated by CySEC and FCA) currently submit their trades/transactions for EMIR, MiFIR and SFTR to an Approved Reporting Mechanism ('ARM') and ('TR'). TRs are authorised by ESMA at an EU level. ARMs are authorised by the local NCA. However, any TR or ARM authorised by the FCA or established in the UK will no longer be part of the EU from 1 January 2021 and therefore ESMA approved.
This means that that a UK based TR or ARM will not be a compliant destination for EMIR, MIFIR and SFTR reports for investment firms that are still within the EU on 1 January 2021 in a no-deal Brexit.
Likewise, an EU based TR or ARM will not be a compliant destination for FCA regulated firms from 1 January 2021 unless transition arrangements are put in place, which will clearly not happen in a no-deal Brexit.
How Are You (and TRs and ARMs) Going to Manage a No-Deal Brexit?
To accommodate a no-deal Brexit scenario, many TRs and ARMs have established new entities and obtained registration for a second TR and ARM. Firms such as DTCC and UnaVista now have separate UK-based and EU-based ARMs and TRs to overcome this problem.
Investment firms (and their delegates) will need to report trades and transactions to the right place in a no-deal Brexit, i.e.:
If your reporting obligation is to UK Financial Conduct Authority (FCA) only, report your trades/transactions to a UK TR/ARM.
If your reporting obligation is to other EU National Competent Authorities (NCAs) only, report to an EU-based TR/ARM.
In a situation where you have dual reporting obligations, report to the respective UK and EU TR/ARM.
What do you need to do?
All investment firms need to start reviewing their current arrangements and ensure they are appropriate in the event of
a no-deal Brexit. This may mean setting up a new contract and reporting arrangements with a new TR/ARM which may or may not be related to the one currently being used. Firms using a delegated reporting provider should check that the appropriate arrangements are being made.
A key message from the FCA is that all firms should continue to prepare for all Brexit scenarios given the state of negotiations. Consider scenarios for you and we assure you a transition that is as smooth as possible and compliant with the post-Brexit reporting requirements.
This week some negotiations are going on informally between the EU and the UK but the next key EU Council will take place in mid-October and the UK Prime Minister has said that if no agreement is reached by then, the UK is heading for a no-deal Brexit.
A Summary of How to Manage EMIR/MiFIR Reporting in a No-Deal Brexit?
The table below indicates which TR or ARM you will need to report your trades/transactions to under each regime.
What are the post-Brexit reporting requirements under MiFIR and EMIR?
MiFIR
In a no-deal Brexit, reporting obligations in the UK will be the same as those under MiFIR/MiFID II as they have been adopted locally by the UK parliament. Over time, the UK is likely to make changes and diverge from the European requirements.
However, in the event where an EU investment firm has executed its transactions via a UK branch or vice versa, the entity will have a dual reporting obligation. The FCA made it clear that the branch will no longer be able to discharge the reporting obligations by transmitting orders to the other entities.
The flow chart below shows the reporting line in two scenarios:
EMIR
Following a no-deal Brexit, the EMIR reports will need to be split by the jurisdiction of the investment firms rather than the location of its branches. The diagram below illustrates the reporting line in various scenarios:
Do you need to split your transactions by jurisdiction?
Investment firms will need to split the transaction reporting files by the relevant jurisdiction of the entities or the branches and submit them with a relevant naming convention.
The countdown to New Year’s Eve is on and Brexit is imminent. If the United Kingdom (UK) leaves the European Union (EU) without an agreement (no-deal Brexit), it is important to ensure transaction reports are submitted to the correct Trade Repository (TR) and/or Approved Reporting Mechanism (ARM). There has been no sign of a Brexit deal yet so at this stage, we are helping you prepare for a ‘worst-case scenario’. Regardless of what happens, your NCA will expect you to manage your EMIR, MiFIR and SFTR requirements.
Where Are You Currently Reporting Your Trades/Transactions to?
European investment firms (e.g. those regulated by CySEC and FCA) currently submit their trades/transactions for EMIR, MiFIR and SFTR to an Approved Reporting Mechanism ('ARM') and ('TR'). TRs are authorised by ESMA at an EU level. ARMs are authorised by the local NCA. However, any TR or ARM authorised by the FCA or established in the UK will no longer be part of the EU from 1 January 2021 and therefore ESMA approved.
This means that that a UK based TR or ARM will not be a compliant destination for EMIR, MIFIR and SFTR reports for investment firms that are still within the EU on 1 January 2021 in a no-deal Brexit.
Likewise, an EU based TR or ARM will not be a compliant destination for FCA regulated firms from 1 January 2021 unless transition arrangements are put in place, which will clearly not happen in a no-deal Brexit.
How Are You (and TRs and ARMs) Going to Manage a No-Deal Brexit?
To accommodate a no-deal Brexit scenario, many TRs and ARMs have established new entities and obtained registration for a second TR and ARM. Firms such as DTCC and UnaVista now have separate UK-based and EU-based ARMs and TRs to overcome this problem.
Investment firms (and their delegates) will need to report trades and transactions to the right place in a no-deal Brexit, i.e.:
If your reporting obligation is to UK Financial Conduct Authority (FCA) only, report your trades/transactions to a UK TR/ARM.
If your reporting obligation is to other EU National Competent Authorities (NCAs) only, report to an EU-based TR/ARM.
In a situation where you have dual reporting obligations, report to the respective UK and EU TR/ARM.
What do you need to do?
All investment firms need to start reviewing their current arrangements and ensure they are appropriate in the event of
a no-deal Brexit. This may mean setting up a new contract and reporting arrangements with a new TR/ARM which may or may not be related to the one currently being used. Firms using a delegated reporting provider should check that the appropriate arrangements are being made.
A key message from the FCA is that all firms should continue to prepare for all Brexit scenarios given the state of negotiations. Consider scenarios for you and we assure you a transition that is as smooth as possible and compliant with the post-Brexit reporting requirements.
This week some negotiations are going on informally between the EU and the UK but the next key EU Council will take place in mid-October and the UK Prime Minister has said that if no agreement is reached by then, the UK is heading for a no-deal Brexit.
A Summary of How to Manage EMIR/MiFIR Reporting in a No-Deal Brexit?
The table below indicates which TR or ARM you will need to report your trades/transactions to under each regime.
What are the post-Brexit reporting requirements under MiFIR and EMIR?
MiFIR
In a no-deal Brexit, reporting obligations in the UK will be the same as those under MiFIR/MiFID II as they have been adopted locally by the UK parliament. Over time, the UK is likely to make changes and diverge from the European requirements.
However, in the event where an EU investment firm has executed its transactions via a UK branch or vice versa, the entity will have a dual reporting obligation. The FCA made it clear that the branch will no longer be able to discharge the reporting obligations by transmitting orders to the other entities.
The flow chart below shows the reporting line in two scenarios:
EMIR
Following a no-deal Brexit, the EMIR reports will need to be split by the jurisdiction of the investment firms rather than the location of its branches. The diagram below illustrates the reporting line in various scenarios:
Do you need to split your transactions by jurisdiction?
Investment firms will need to split the transaction reporting files by the relevant jurisdiction of the entities or the branches and submit them with a relevant naming convention.
Quinn is Co-CEO and founder of TRAction and focuses on assisting clients in Europe, Asia and Australia to meet their regulatory requirements with trade and transaction reporting solutions as well as development of the best execution platform. With a background in IT, Quinn started in the financial markets as IT Manager for City Index. He then co-founded and worked as a General Manager at one of Australia’s largest margin FX and CFD providers. Quinn has provided educational sessions to Australia’s regulatory bodies in relation to operational aspects of derivatives and trading platforms.
Professional Trader-Focused UK Prop Firm YCM-Invest Struggles with 2023 Revenue
Executive Interview with Elina Pedersen | Your Bourse | FMLS:24
Executive Interview with Elina Pedersen | Your Bourse | FMLS:24
Executive Interview with Elina Pedersen, Chief Revenue Officer at Your Bourse at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Elina Pedersen, Chief Revenue Officer at Your Bourse at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Rauan Khassan | TradingView | FMLS:24
Executive Interview with Rauan Khassan | TradingView | FMLS:24
Executive Interview with Rauan Khassan from TradingView at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Rauan Khassan from TradingView at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation #nvidia #DigitalAssets #GlobalFinance #globalbanking
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Nadia Edwards-Dashti | Harrington Star | FMLS:24
Executive Interview with Nadia Edwards-Dashti | Harrington Star | FMLS:24
Fintech Talent in the UK: The Human Factor Driving Industry Change 🌟
What does it take to attract, retain, and upskill the best fintech talent in today’s rapidly evolving UK market? In this engaging interview, Nadia Edwards-Dashti, Chief Customer Officer at Harrington Star, explores the future of talent recruitment, the rise of sales roles, and how AI is reshaping the industry—without replacing the human touch.
#fmls #fmls24 #fmevents #recruitment #financialcareers
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Fintech Talent in the UK: The Human Factor Driving Industry Change 🌟
What does it take to attract, retain, and upskill the best fintech talent in today’s rapidly evolving UK market? In this engaging interview, Nadia Edwards-Dashti, Chief Customer Officer at Harrington Star, explores the future of talent recruitment, the rise of sales roles, and how AI is reshaping the industry—without replacing the human touch.
#fmls #fmls24 #fmevents #recruitment #financialcareers
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Roberto Politano | Innovate Finance | FMLS:24
Executive Interview with Roberto Politano | Innovate Finance | FMLS:24
Executive Interview with Roberto Politano from Innovate Finance at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Executive Interview with Roberto Politano from Innovate Finance at the Finance Magnates London Summit 2024
#fmls #fmls24 #fmevents #RetailTrading #FintechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
#fmls #fmls24 #fmevents #cyptotrading #DigitalAssets #pepperstone
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
#fmls #fmls24 #fmevents #cyptotrading #DigitalAssets #pepperstone
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!