MiFID II and MiFIR order flagging requirements

Release date: 29 May 2019

052/2019 MiFID II and MiFIR order flagging requirementsXetra Circular 052/2019

Since 3 January 2018, all Trading Participants have been required by MiFID II/MiFIR to identify the algorithm, the execution decision maker, the investment decision maker and the client (Article 48(10) of Directive 2014/65 EU and Article 25(2)(3) of Regulation 600/2014). These requirements were incorporated in the Exchange Rules of Frankfurter Wertpapierbörse (FWB®) (§§ 40, 74 and 114). FWB strongly advises Trading Participants to follow the MiFID II and MIFIR flagging requirements.

Please find all flagging options and scenarios in the document “MiFID II/MiFIR flagging requirements” on the Xetra website www.xetra.com under the following link:

The fields “execution decision”, “investment decision” and “clientID” in the order requests are to be filled using the “short code” solution. Please note that algorithms do not need to be encrypted using short codes due to their numerical format. Only natural persons and Legal Entity Identifiers (LEIs) need encryption using the short code solution. The investment decision and execution decision qualifiers are to be set to either algorithm or natural person.

Trading Participants are obliged to upload the corresponding long codes to their short codes in the FWB upload functionalities (SFTP or Member Section) prior to but not later than trading day t+1. Algorithm certificates need to be provided to FWB prior to the introduction of algorithms via the FWB upload functionalities (SFTP or Member Section). For further details, please refer to the “Reporting Handbook” on the Xetra website under the above link.

Most important updates of the reporting handbook:

  • Segment MIC distribution/publication and new segment MICs for the Scale segment and TES LIS and TES Enlight
  • Information on “leading zeros” of short codes and algoIDs and other details
  • Inclusion of a direct market access (DMA) chapter
  • Inclusion of ESMA identifier formats to the annex

Links to documents:

  
Recipients:All Xetra® Members and Vendors
Target groups:Traders, Technical Contacts, Security Administrators, System Administrators, Nominated Persons, General
Contact:Your Technical Key Account Manager under your VIP number or cts@deutsche-boerse.com for technical questions,
client.services@deutsche-boerse.com or sales.cashmarket@deutsche-boerse.com for functional questions
Web:www.xetra.com
Authorized by:Cord Gebhardt, Annette Czypull

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