MiFID II and MiFIR order flagging requirements – New report TR166

Release date: 11 May 2020

033/2020 MiFID II and MiFIR order flagging requirements – New report TR166Xetra Circular 033/20

1. Introduction

With T7 Release 8.1, Deutsche Börse offers all participants a new report "TR166 Identifier Mapping Final Error Report", which contains the number of not decrypted short/long code combinations. This report will be made available to participants in addition to the existing TR160 and TR161 short code reports and will be used in future as the basis for sanctions measures.

Introduction date: 29 June 2020

2. Required action

This circular is to remind you of the obligation of all Trading Participants to provide the data required in accordance with Directive 2014/65 EU and Regulation 600/2014, as already explained in Xetra circular 065/19. 

Please note that violations of this obligation may be punished by the Sanctions Committee of Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange).

3. Details

Report TR166 

With T7 Release 8.1 for the Xetra trading platform (MIC Code: XETR) on 29 June 2020, and with the migration of the Frankfurt Stock Exchange trading platform (including the Structured Products of Börse Frankfurt Zertifikate AG) to the T7 trading system on 24August 2020 (MIC Code: XFRA), the new report "TR166 Identifier Mapping Final Error Report" will be made available to Trading Participants on a daily basis.

The report contains the not decrypted short codes of a trading day "T" after the period "T+1". It also contains the number of all used short codes in addition to the number of not decrypted short codes of trading day "T" as well as their percentage shares. The report supports Trading Participants to determine the final error rates of their data deliveries for trading day "T" after the "T+1" deadline.

The report will be available in the T7 simulation environment for XETR and XFRA from 3 June 2020.

Legal basis

Since 3 January 2018, all Trading Participants have been required to identify the algorithm they are using in connection with their participation in exchange trading, 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 legal requirements were incorporated in the Exchange Rules of Frankfurter Wertpapierbörse (FWB®) (§§ 40, 74 and 114 Exchange Rules FWB®). We would like to point out that violations against these reporting requirements will in future be handed to the Sanctions Committee.

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 orders 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 identifiers are to be set to either “Algorithm” or “Natural person”. 

Trading Participants are obliged to upload the corresponding explanatory long codes to their short codes in the FWB® upload functionalities (SFTP or Member Section) prior to but not later than the next trading day (T+1). Algorithm certificates need to be provided to FWB® prior to the usage 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 link stated above.

Links to the documents:

Recipients:All Xetra® Members and Vendors
Target groups:Compliance departments, Nominated Persons
Contact:For functional questions: client.services@deutsche-boerse.com or sales.cashmarket@deutsche-boerse.com, for compliance-related questions: regulatory.processing@deutsche-boerse.com
Related Xetra circular:065/19
Web:www.xetra.com
Authorised by:Cord Gebhardt, Annette Czypull

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