A firm that executes a transaction must report the details to us if it is executed
(1) in any financial instrument admitted to trading on a regulated market1 or prescribed market (whether or not the transaction was carried out on such a market); or
(2) in any Over The Counter (OTC) derivative, the value of which is derived from or is otherwise dependent on an equity or debt-related financial instrument that is admitted to trading on a regulated market or on a prescribed market.
Reporting firms should also consider the following exceptions:
a. SUP 17.1.4R(2) does not apply to a transaction in any OTC derivative, the value of which is derived from or is otherwise dependent on multiple equity or multiple debt-related financial instruments, except where the
multiple financial instruments are all issued by the same issuer. For example, we no longer require firms to transaction report OTC derivatives on the FTSE 100 index.
b. Firms can be relieved of their obligation to make a transaction report if the transaction is instead reported directly to us by an ARM or by a regulated market or multi-lateral trading facility (MTF) through whose systems the transaction was completed.
c. Transactions in commodity, interest rate and foreign exchange derivatives are not reportable It has been agreed by CESR and the European Commission that competent authorities need not require firms to report transactions in non-securities derivatives (i.e. commodity, interest rate and FX derivatives) admitted to trading on regulated markets.We do not require firms to report transactions in these derivatives and we will work with LIFFE, the London Metal Exchange (LME) and Intercontinental Exchange (ICE) to ensure that, where another competent authority requires information on transactions in these derivatives, it is made available.
