Información MiFIR requerida de los titulares de cuenta que no tengan obligaciones de resentar informes

El régimen de información de operaciones requiere que las empresas de servicios de inversión del EEE, como IBUK, incluyan identificadores de cliente específicos en sus informes de operaciones.

Las cuentas que operen en instrumentos financieros mantenidos por Interactive Brokers (U.K.) Limited (“IBUK”) deberán identificarse en los informes de IBUK mediante el uso de identificadores específicos que podrían o no ya estar disponibles para IBUK.

De igual manera, las empresas de servicios de inversión del EEE que utilicen la plataforma IB para las órdenes de sus clientes y hayan elegido presentar informes de transacciones a través de IBUK deberán utilizar los mismos identificadores para las órdenes de sus clientes. Si usted es cliente de una de estas empresas, IBUK podría necesita información adicional de su parte para completar los informes de transacciones.

Esta información deberá proporcionarse a IBUK a más tardar el 30 de noviembre de 2017.

Se requiere nueva información
Cuando sea necesaria información adicional a estos efectos, se pedirá a los clientes que la proporcionen mediante un formulario electrónico disponible en Gestión de Cuenta.

La información solicitada para estas cuentas es:

  • - Todos los países de ciudadanía para las personas naturales que sean titulares de cuenta y operadores autorizados;
  • - Un identificador nacional específico para personas naturales que sean titulares de cuenta y operadores autorizados;
  • El identificador de entidad legal (LEI) para entidades legales. Los clientes que no tengan un LEI podrán solicitar uno a través de IBUK.
  • Para cuentas de organizaciones, una indicación sobre si la entidad legal es una entidad no financiera que utiliza la cuenta para operaciones en transacciones de derivados sobre materias primas para reducir el riesgo de forma objetivamente mensurable de acuerdo con el artículo 57 de MiFID II.

 Nota: Para una lista de definiciones y términos comunes de MiFIR consulte el artículo KB2980

ESTA INFORMACIÓN SE OFRECE COMO GUÍA SOLO PARA CLIENTES COMPENSADOS DE INTERACTIVE BROKERS. ESTA GUÍA NO APLICA A CUENTAS DE SOLO EJECUCIÓN.

NOTA: LA INFORMACIÓN ARRIBA MENCIONADA NO PRETENDE SER UNA GUÍA COMPLETA Y EXHAUSTIVA Y NO ES UNA INTERPRETACIÓN DEFINITIVA DEL REGLAMENTO, SINO UN RESUMEN DE LAS OBLIGACIONES DE PRESENTACIÓN DE INFORMES DE MiFIR.

Resumen de información de operaciones bajo MiFIR

Antecedentes
El 3 de enero de 2018, entrarán en vigor una nueva Directiva 2014/65/EC (“MiFID II”) y el Reglamento (EU) N.º 600/2014 (“MiFIR”), que introducirán cambios significativos al marco para informes sobre las operaciones (“Informes de operaciones MiFIR”) que se creó en 2007 con la directiva relativa a los mercados de instrumentos financieros (“MiFID I”).

Interactive Brokers (U.K.) Limited (“IBUK”) ha implementado un nuevo sistema de información de operaciones que permitirá que los clientes de IBUK y de Interactive Brokers Group (“IB Group”) que tengan obligaciones directa de presentar informes bajo el nuevo reglamento que cumplan los nuevos requisitos MiFIR.

Los clientes afectados deberán proporcionar información adicional a Interactive Brokers para continuar operando a través de sus cuentas cuando los nuevos requisitos para la presentación de informes sea efectivo el 3 de enero de 2018. Interactive Brokers solicitará la información requerida de forma electrónica para facilitar su recopilación.

Se pedirá a los clientes afectados que proporcionen esta información de forma puntual y, a más tardar, el 30 de noviembre de 2017.
 

Alcance de las obligaciones de información de operaciones de MiFIR

La información de operaciones de MiFIR se aplica a empresas de inversiones del espacio económico europeo (EEE), como IBUK y a todas las empresas de inversión del EEE que utilizan IBUK u otras filiales de Interactive Brokers Group para ejecutar órdenes. Como cliente de IBUK o de una empresa de inversiones que utiliza la plataforma de IB, se le podría pedir que proporcionara información adicional para permitir la presentación de informes de operaciones adecuados.

Las empresas de inversión del EEE están obligadas a comunicar los datos completos y exactos de las operaciones ejecutadas en instrumentos financieros cubiertas por MiFIR a la autoridad competente nacional a más tardar al cierre del siguiente día hábil.

MiFIR ha ampliado el alcance de los instrumentos financieros cuyas operaciones requieren presentación de informes para cubrir aquellos que se negocian en mercados regulados del EEE, en sistemas multilaterales de negociación ("SMN") y en sistemas organizados de contratación ("SOC"). Además de las transacciones ejecutadas en los mercados EEE, el reglamento MiFIR afectará a transacciones extrabursátiles y transacciones de instrumentos financieros cotizados en el EEE que se ejecuten en centros de negociación que no pertenezcan al EEE, por ejemplo, una acción cotizada en LSE y negociada en NYSE. (ver los instrumentos financieros cubiertos por MiFIR).


Soluciones de información de operaciones para MiFIR que son empresas de servicios de inversiones del EEE: informes de transacciones delegadas y enriquecidas
Los clientes de IB que hayan confirmado que son una empresa de servicios de inversión del EEE sujeta a obligaciones de presentación de informes de operaciones bajo MiFir tendrán la opción de delegar sus obligaciones de presentación de informes a IBUK.

Algunas transacciones ejecutadas por estas empresas de inversiones del EEE serán presentadas a IBUK bajo las obligaciones de “informes enriquecidos”. Para estas operaciones, IBUK añadirá detalles sobre las empresas de servicios de inversión a sus propios informes, cumpliendo las obligaciones de presentación de informes de la empresa de inversiones. Otras transacciones solo se informarán en nombre de las empresas de inversión sobre una base delegada, como informes separados además de los informes propios de IBUK. Los clientes solo necesitarán firmar un acuerdo con IBUK que cubra ambos tipos de informes.

Haga clic aquí para ver más detalles sobre los informes de transacciones delegadas y enriquecidas.
 

Información que se ha de informar
Los campos de informes han aumentado de 23 bajo el régimen del MiFID I a 65 bajo MIFIR. Los nuevos requisitos de información ahora incluyen, entre otros:

  • Identificación detallada del comprador y el vendedor para cada transacción. En concreto, el Reglamento requiere la presentación de identificadores de entidad jurídica (“LEI”) para entidades legales e identificadores nacionales para personas naturales (con base en sus países de ciudadanía).
  • Identificador del tomador de decisiones para el comprador y el vendedor cuando una tercera parte ejerce discreción:
    • Una persona que no sea el titular de cuenta de una cuenta conjunta o individual, o una entidad tercera.
    • Una tercera parte diferente a los operadores autorizados en la cuenta para una cuenta de organización (por ejemplo, un asesor financiero que opere para las subcuentas de sus clientes).

Esta información no es requerida cuando el titular de cuenta opera por cuenta propia o cuando los operadores autorizados operan para su propia organización.

  • La identificación de la persona o algoritmo que es responsable en la empresa de la que se informa de realizar las decisiones de inversión o de la ejecución de una transacción. Esta información es requerida para las empresas de servicios de inversiones del EEE que utilicen nuestros servicios de informes. Por favor, haga clic aquí para ver más detalles.
  • Para las transacciones de derivados sobre materias primas, una indicación sobre si dichas transacciones en derivados sobre materias primas reducen el riesgo de una manera objetivamente mensurable de acuerdo con el Artículo 57 de MiFID II; Esto es aplicable a cuentas de organización solo cuando el titular es una entidad no financiera.

La nueva información afecta a los clientes de Interactive Brokers de diferentes maneras, dependiendo de si el cliente es una empresa de servicios de inversiones del EEE o una organización/persona que no es una empresa de inversiones y dependiendo también de si los instrumentos financieros que se negocian son mantenidos por IBUK u otro afiliado del Interactive Brokers Group.
 

Implicaciones para clientes de IB que no estén sujetos a obligaciones de información de transacciones bajo MiFIR
Para cumplir con sus propias obligaciones de información de operaciones, IBUK está obligado a identificar e informar de sus clientes inmediatos para cada transacción ejecutada. La información debe contener los nuevos identificadores indicados por los Reglamentos.

Por lo tanto, IBUK deberá obtener un identificador de cliente e informar para:

  • Clientes directos de IBUK que mantengan una cuenta para operar instrumentos financieros mantenidos con IBUK;
  • Clientes que sean empresas de inversiones del EEE y utilicen los servicios de información de Interactive Brokers;
  • Clientes que sean subcuentas de una empresa de inversiones del EEE que utilicen la plataforma de Interactive y utilicen nuestros servicios de informes.

Consulte el artículo KB2976 para más detalles sobre la información requerida por parte de titulares de cuenta que no estén sujetos directamente a MiFIR.

 

Nota: Para una lista de definiciones y términos comunes de MiFIR consulte el artículo KB2980

 

ESTA INFORMACIÓN SE OFRECE COMO GUÍA SOLO PARA CLIENTES COMPENSADOS DE INTERACTIVE BROKERS. ESTA GUÍA NO APLICA A CUENTAS DE SOLO EJECUCIÓN.

NOTA: LA INFORMACIÓN ARRIBA MENCIONADA NO PRETENDE SER UNA GUÍA COMPLETA Y EXHAUSTIVA Y NO ES UNA INTERPRETACIÓN DEFINITIVA DEL REGLAMENTO, SINO UN RESUMEN DE LAS OBLIGACIONES DE PRESENTACIÓN DE INFORMES DE MiFIR.
 

PRIIPs Regulation

The Packaged Retail and Insurance-based Investment Products Regulation - EU No 1286/2014 (“PRIIPs Regulation” or “PRIIPs”) entered into force on 29 December 2014 and its requirements become applicable on 1 January 2018. The Regulation requires product manufacturers to create and maintain Key Information Documents (KIDs) and persons advising or selling PRIIPs to provide retail investors based in the European Economic Area (EEA) with KIDs to enable those investors to better understand and compare products.
 

The objectives of the PRIIPs Regulation.
Since the financial crisis of 2008, one of the main objectives of the European Commission has been to increase consumer protection and rebuild confidence in financial markets.
 

The Regulation introduces a new standardised Key Information Document (KID) to improve the retail investor’s understanding of PRIIPs and the comparability of those products. A PRIIP is defined as any investment where the amount repayable to the investor is subject to fluctuations because of exposure to reference values. In addition to insurance products, some examples of PRIIPs are options, futures, CFDs, structured products, etc.

The Regulation is an investor protection legislation, the main objectives are:

  • To ensure the understanding and the comparability between similar products in order to help the investor make investment decisions.
  • Improve transparency and increase confidence in the retail investment market.
  • Promote a single European insurance market.

The Regulation aims to achieve these objectives by defining the standard format and content for the KID.

What is a KID?
The KID is a 3-page document that contains important details of the product including general description, cost, risk reward profile and possible performance scenarios.
 

Who is the regulation applicable to?
The Regulation applies to both PRIIPs manufacturers and distributors. The responsibility to create and maintain the document falls to the product manufacturer. However, any distributor or financial intermediary that sells or provides advice about PRIIPs to a retail investor, or receives a buy order for a PRIIP from a retail investor, must provide the investor with a KID. This also applies to execution-only, online environments.
 

Who should receive a KID?
Retail investors domiciled in the EEA should receive a KID prior to investing in a PRIIP. If no KID is available from the manufacturer, the PRIIP will be restricted from trading for EEA retail customers.
 

Implications for Interactive Brokers:
In order to meet the PRIIPs Regulation, where required, IB UK will provide KIDs electronically by means of a website (“PRIIPs KID Landing Page”).
 

Where can I find the PRIIPs KID Landing Page?
The KIDs can be accessed from our designated PRIIPs KID Landing Page. There are three different ways you can find the KIDs. They are available through the IB Trader Workstation (“TWS”), the IB website and Account Management.

 1. Find KIDs through TWS:

  • Log into TWS
  • Right click on the symbol of the product for which you want the KID.
  • Under Financial Instrument Info select Details.

 

  • From the Contract Details page, you can select the PRIIPs KID link. This will take you to our PRIIPs KID Landing Page in Account Management.

 

  2. Find KIDs through the IB website:

  • Open the Trading tab and select Product Listings

  • Select the derivative type, region and exchange of the product for which you would like to find the contract information.

  • Select the product you would like to see the KID of, which will take you to the Contract Details page.

  • From the Contract Details page, as above, you can select the PRIIPs KID link, which will take you to our PRIIPs KID Landing Page in Account Management.

 3. Find KIDs through Client Portal:

  • Log into Client Portal.
  • Select Support Home from the Support Tab.

  • In the Information & Tools section, select PRIIPs Kid, which will take you to our PRIIPs KID Landing Page.

Or, if you are on the Classic Account Management:

  • Select Tools from the Support Tab

  • Select OK to be redirected to New AM.

  • In the Information & Tools section, select PRIIPs Kid, which will take you to our PRIIPs KID Landing Page.

MiFIR Definitions & Terms

European Economic Area (EEA) - As of October 2017, the EEA consists of the following countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.


Investment Firms - Article 4 (1) (1) of MiFID II defines investment firm as any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis. The investment services and activities covered by the framework are listed in Section A of Annex I of MiFID II.
 

Transactions Executed - For the purposes of MiFIR Transaction Reporting, a transaction is the conclusion of an acquisition or disposal of one of the financial instruments covered by MiFIR. A transaction is considered to be executed when it resulted from one of the following activities performed by an Investment Firm:

  1. Reception or transmission of orders in relation to one or more financial instruments (exceptions apply under Article 4 of Commission Delegated Regulation (EU) 2017/590);
  2. Execution of orders on behalf of clients;
  3. Dealing on own account;
  4. Making an investment decision in accordance with a discretionary mandate given by a client;
  5. Transfer of financial instruments to or from accounts.

[Ref: Articles 2 and 3 of Commission Delegated Regulation (EU) 2017/590]
 

IB Broker - Accounts that trade financial instruments which are carried by one of the following Interactive Brokers Group entities ("IB Brokers"):

  • Interactive Brokers (U.K.) Limited
  • Interactive Brokers Central Europe Zrt.
  • Interactive Brokers Ireland Limited
  • Interactive Brokers Luxembourg SARL

 

Financial Instruments Covered by MiFIR - Article 26 (2) of Regulation (EU) No 600/2014 (MiFIR) lays out the transaction reporting obligation with regard to transactions in financial instruments listed below, irrespective of whether or not such transactions are carried out on the trading venue:

  1. Financial instruments which are admitted to trading or traded on a trading venue or for which a request for admission to trading has been made;
  2. Financial instruments where the underlying is a financial instrument traded on a trading venue; and
  3. Financial instruments where the underlying is an index or a basket composed of financial instruments traded on a trading venue.

The financial instruments covered by this requirement are legally enumerated in Section C of MiFID II:
(1) Transferable securities;
(2) Money-market instruments;
(3) Units in collective investment undertakings;
(4) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
(5) Options, futures, swaps, forwards and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event;
(6) Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market, a MTF, or an OTF, except for wholesale energy products traded on an OTF that must be physically settled;
(7) Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in point 6 of this Section and not being for commercial purposes, which have the characteristics of other derivative financial instruments;
(8) Derivative instruments for the transfer of credit risk;
(9) Financial contracts for differences;
(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market, OTF, or an MTF;
(11) Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme).
 

National Identifiers - Under MiFIR, natural persons must be reported by using specific national identifiers required under a priority order that depends and varies on the Country of citizenship that is identified as relevant under MiFIR. The identifier can be a passport, a national ID card, a tax or personal code or a concatenation of full name and date of birth (“CONCAT”). The IB Broker will only request clients to provide national identifiers that are not already available.
 

Legal Entity Identifiers (“LEI”) = 20-character unique identifier based on the ISO 17442 for the global identification of legal entities that engage in financial transactions.
 

Commodity Derivatives Transactions that reduce risk in an objectively measurable way - When reporting transactions in commodity derivatives, the IB Broker will have to specify whether the transaction reduces risk in an objectively measurable way in accordance with Article 57 of Directive 2014/65/EU (“Art 57”).  The IB Broker will allow such transactions only from accounts held by entities that are non-financial entities using the account for trades in commodity derivatives that are intended to objectively reduce risk directly relating to their commercial activity in accordance with Art 57. (e.g. company that produces wheat that trades in such derivatives to hedge its commercial activity).

Account holders that make such a declaration in the Trading Permission section of their Account Management, agree that all the transactions executed in commodity derivatives for that account will be executed for reducing the risk under Art 57, and the IB Broker will report the relevant transactions accordingly.


Individual or algorithm responsible at the reporting firm for making the investment decision - Under MiFIR, Investment Firms are required to include in their transaction reports the identification of the individual or algorithm that was primarily responsible for making the investment decision within the firm to acquire or dispose of a financial instrument. Only one individual or algorithm can be identified as responsible with regard to a transaction, and Investment Firms must identify such individual or algorithm as specified in Article 8 of commission delegated regulation (EU) 2017/590.

In accordance with these requirements, your IB Broker has implemented a new section in Account Management and new features in the IB Trader Workstation to allow Investment Firms that report their transactions through an IB Broker to identify individuals and algorithms in compliance with the new obligations.


Individual responsible at the reporting firm for the execution of a transaction - Art 9 of Commission Delegated Regulation (EU) 2017/590 requires Investment Firms to identify individuals or algorithms responsible for determining which trading venue to access […], which firms to transmit orders to or any other condition related to the execution of an order. While this requirement applies only to IB Brokers for the majority of the transactions reports (because the IB Broker is usually the entity that executes the transaction), when an order is submitted by an Investment Firm that transaction reports through an IB Broker via the Delegated Transaction Reporting, the specific user that has submitted the order will be reported as responsible for executing the transaction.
 

Article 4 of commission delegated regulation (EU) 2017/590 - Transmission of an order

1. An investment firm transmitting an order pursuant to Article 26(4) of Regulation (EU) No 600/2014 (transmitting firm) shall be deemed to have transmitted that order only if the following conditions are met:

(a) the order was received from its client or results from its decision to acquire or dispose of a specific financial instrument in accordance with a discretionary mandate provided to it by one or more clients;

(b) the transmitting firm has transmitted the order details referred to in paragraph 2 to another investment firm (receiving firm);

(c) the receiving firm is subject to Article 26(1) of Regulation (EU) No 600/2014 and agrees either to report the transaction resulting from the order concerned or to transmit the order details in accordance with this Article to another investment firm.
 

For the purposes of point (c) of the first subparagraph the agreement shall specify the time limit for the provision of the order details by the transmitting firm to the receiving firm and provide that the receiving firm shall verify whether the order details received contain obvious errors or omissions before submitting a transaction report or transmitting the order in accordance with this Article.

2. The following order details shall be transmitted in accordance with paragraph 1, insofar as pertinent to a given order:

(a) the identification code of the financial instrument;

(b) whether the order is for the acquisition or disposal of the financial instrument;

(c) the price and quantity indicated in the order;

(d) the designation and details of the client of the transmitting firm for the purposes of the order;

(e) the designation and details of the decision maker for the client where the investment decision is made under a power of representation;

(f) a designation to identify a short sale;

(g) a designation to identify a person or algorithm responsible for the investment decision within the transmitting firm;

(h) country of the branch of the investment firm supervising the person responsible for the investment decision and country of the investment firm's branch that received the order from the client or made an investment decision for a client in accordance with a discretionary mandate given to it by the client;

(i) for an order in commodity derivatives, an indication whether the transaction is to reduce risk in an objectively measurable way in accordance with Article 57 of Directive 2014/65/EU;

(j) the code identifying the transmitting firm.

For the purposes of point (d) of the first subparagraph, where the client is a natural person, the client shall be designated in accordance with Article 6. For the purposes of point (j) of the first subparagraph, where the order transmitted was received from a prior firm that did not transmit the order in accordance with the conditions set out in this Article, the code shall be the code identifying the transmitting firm. Where the order transmitted was received from a prior transmitting firm in accordance with the conditions set out in this Article, the code provided pursuant to point (j) referred to in the first subparagraph shall be the code identifying the prior transmitting firm. 

 3. Where there is more than one transmitting firm in relation to a given order, the order details referred to in points (d) to (i) of the first subparagraph of paragraph 2 shall be transmitted in respect of the client of the first transmitting firm.

4. Where the order is aggregated for several clients, information referred to in paragraph 2 shall be transmitted for each client.
 

Also see:

Overview of MIFIR Transaction Reporting

MiFIR Enriched and Delegated Transaction Reporting for EEA Investment Firms

MiFIR Information Required from Account Holders that do not have Reporting Obligations

 

MiFIR Information Required from Account Holders that do not have Reporting Obligations

The MiFIR Transaction Reporting regime requires Investment Firms, like your IB Broker, to include specific client identifiers in their transaction reports.

Accounts that trade in financial instruments which are carried by one of the following Interactive Brokers Group entities (“IB Brokers”) will need to be identified in the IB Broker’s reports by using specific identifiers that may or may not be already available to it.

  • Interactive Brokers (U.K.) Limited
  • Interactive Brokers Central Europe Zrt.
  • Interactive Brokers Ireland Limited
  • Interactive Brokers Luxembourg SARL

Similarly, Investment Firms that use the IB platform for their clients’ orders and have elected to transaction report through their IB Broker will have to use the same identifiers for their client orders. If you are the client of such a firm, your IB Broker may need additional information from you to complete the transaction reports.

 

Information Required
When additional information is necessary for this purpose, clients will be asked to provide it via the completion of an electronic form available in the Account Management.

The information requested for these accounts is:

  • All countries of citizenship for natural persons that are account holders and authorised traders;
  • A specific National Identifier for natural persons that are account holders and authorised traders;
  • The Legal Entity Identifier for legal entities. Clients that do not have an LEI will be able to apply for one through their IB Broker.
  • For organisation accounts, an indication as to whether the Legal Entity is a non-financial entity using the account for trades in Commodity Derivatives Transactions to reduce risk in an objectively measurable way in accordance with Article 57 of MiFID II.

 Note: For a listing of common MiFIR definitions and terms, see KB2980

THIS INFORMATION IS GUIDANCE FOR INTERACTIVE BROKERS CLEARED CLIENTS ONLY. THIS GUIDANCE DOES NOT APPLY TO EXECUTION ONLY ACCOUNTS.

NOTE: THE INFORMATION ABOVE IS NOT INTENDED TO BE A COMPREHENSIVE OR EXHAUSTIVE GUIDANCE AND IT IS NOT A DEFINITIVE INTERPRETATION OF THE REGULATION, BUT A SUMMARY OF MiFIR TRANSACTION REPORTING OBLIGATIONS.

MiFIR Enriched and Delegated Transaction Reporting for Investment Firms

Who is Subject to the MiFIR Transaction Reporting Requirements?
All EEA and UK investment firms (collectively, "Investment Firms") are subject to the reporting requirements and will have to report all transactions executed in financial instruments covered by MiFIR within one working day from their execution.

The below entities (“IB Brokers”), will offer assistance to IB clients that are Investment Firms in complying with the new requirements:

  • Interactive Brokers (U.K.) Limited
  • Interactive Brokers Central Europe Zrt.
  • Interactive Brokers Ireland Limited
  • Interactive Brokers Luxembourg SARL

With the exception of Omnibus Introducing Brokers, where applicable, that utilise the IB platform (in which all their underlying client positions are held in one or more omnibus accounts), all IB clients that are EEA Investment Firms will be able to elect to have their IB Broker report on their behalf. The IB Broker will report for IB clients based on two distinct reporting mechanisms implemented in accordance with the Regulation: Enriched Transaction Reporting and Delegated Transaction Reporting.

 

ENRICHED TRANSACTION REPORTING
In compliance with Article 4 of Commission Delegated Regulation (EU) 2017/590, if an IB Broker includes details of orders submitted by clients that are Investment Firms (“the transmitting firm”) in its own transaction reports, the transmitting firm is exempt from reporting these transactions.

Enriched Transaction Reporting will only apply to transactions in financial instruments carried by an IB Broker submitted for execution by an Investment Firm for the benefit of the Investment Firm’s clients (for example, a Financial Advisor, Fund Manager or Introducing Broker Account submitting orders for its clients' subaccounts).

 

DELEGATED TRANSACTION REPORTING
Delegated Transaction Reporting services are provided by an IB Broker to Investment Firms for all other transactions submitted by the Investment Firm.

This includes transactions entered by the Investment Firm for its own proprietary account, transactions submitted on the basis of discretionary mandates given by their clients and transactions in Financial Instruments for which an IB Broker is not the carrying broker (i.e., any transaction in a financial instrument where another IB affiliate is the carrying broker). Delegated transaction reporting does not apply where the trades are submitted directly by clients of the Investment Firm.

These reports will be submitted to the National Competent Authority (“NCA”) of the Country of legal residence recorded in the Legal Entity Identifier of the account for which the Delegated Transaction Reporting was enabled (e.g., if the Investment Firm’s legal residence is Netherlands, transactions will be reported to the Authority for the Financial Markets (AFM)).

Clients will only need to sign one agreement with an IB Broker to cover both Enriched and Delegated Transaction Reporting.


How to Sign Up for the Enriched and Delegated Transaction Reporting Service
Investment Firms (other than Omnibus Introducing Brokers) will be prompted to complete an electronic form in the Account Management system during which it will be possible to accept to use IB’s Enriched and Delegated Transaction Reporting Service.

Investment Firms that are Omnibus Introducing Brokers on the IB platform will not have the ability to activate the Enriched and Delegated Transaction Reporting.

Investment Firms that utilise IB’s Enriched and Delegated Transaction Reporting Service will need to sign the relevant legal agreement and provide the following information:

  • Legal Entity Identifier (“LEI”). Clients that do not have an LEI, will be able to apply for one through an IB Broker;
  • The citizenship(s) for each authorised trader and further information as required by the national client identifier requirements for the relevant country;
  • Individuals or Algorithms that can be responsible for making the investment decision within the investment firm:
    1. Individual active traders who have been previously selected as possible investment decision makers within the firm. Only individuals that are authorised as traders on the account will be allowed;
    2. Algorithm identifiers provided for algorithms that the firm may use for making investment decisions. It is the client’s responsibility to determine and provide algorithm identifiers in compliance with the regulation.

How the New Requirements Will Affect the Account Management and the IB Order Entry System
Some of the information required for the submission of a transaction report may change on an order by order basis, and may require input of the person submitting the trade. Hence, IB has amended IB Account Management and the IB Order Entry System to allow traders to provide the necessary information.

Accounts that want to use IB’s Enriched and Delegated Transaction Reporting Service shall select the authorised traders and list the Algorithm IDs that may be responsible for making an investment decision.

The traders and algorithms listed in Account Management will be displayed in a new dropdown field of the IB Trader Workstation at the time of the order submission. This field will show the default value selected in Account Management of the account. The client will be able to change this by selecting another value present in the dropdown list.

The IB Trader Workstation will allow an authorised trader on the account for which the Enriched and Delegated Transaction Reporting was activated to select one person or algorithm as responsible for the investment decision within the firm with regard to the specific order submitted.

 Note: For a listing of common MiFIR definitions and terms, see KB2980

 

THIS INFORMATION IS GUIDANCE FOR INTERACTIVE BROKERS CLEARED CLIENTS THAT ARE INVESTMENT FIRMS ONLY. THIS GUIDANCE DOES NOT APPLY TO EXECUTION ONLY ACCOUNTS.

NOTE: THE INFORMATION ABOVE IS NOT INTENDED TO BE A COMPREHENSIVE OR EXHAUSTIVE GUIDANCE AND IT IS NOT A DEFINITIVE INTERPRETATION OF THE REGULATION, BUT A SUMMARY OF MiFIR TRANSACTION REPORTING OBLIGATIONS.

 

Overview of MIFIR Transaction Reporting

Background
On 3 January 2018, a new Directive 2014/65/EC (“MiFID II”) and Regulation (EU) No 600/2014 (“MiFIR”) became effective, introducing significant changes to the transaction reporting (“MiFIR Transaction Reporting”) framework that was created in 2007 with the Markets in Financial Instrument Directive (“MiFID I”).

Interactive Brokers has implemented a new transaction reporting system that will enable clients that have direct reporting obligations under the new Regulation to comply with the new MiFIR requirements.

 

Scope of MiFIR Transaction Reporting Obligations

MiFIR Transaction Reporting applies to European Economic Area (“EEA”) and United Kingdom ("UK") Investment Firms ("Investment Firms") and also to Investment Firms that use a broker within the IB Group ("IB Group") to execute orders. As a client of an Investment Firm that uses the IB platform, you may be required to provide additional information to allow the proper transaction reports to be filed.

Investment Firms are obliged to report complete and accurate details of transactions executed in financial instruments covered by MiFIR to the relevant National Competent Authority (“NCA”) no later than the close of the next working day.

MiFIR has widened the scope of reportable financial instruments to cover those that are traded on EEA/UK Regulated Exchanges, Multilateral Trading Facilities (“MTFs”) and Organised Trading Facilities (“OTFs”). In addition to transactions executed on EEA/UK exchanges, MiFIR will capture Over the Counter (“OTC”) transactions and transactions of EEA/UK listed financial instruments that are executed on non-EEA/UK trading venues, e.g., a stock listed on the LSE traded on NYSE. (see financial instruments covered by MiFIR).


MiFIR Transaction Reporting Solutions for IB Clients that are EEA Investment Firms: Enriched and Delegated Transaction Reporting
IB clients that have confirmed that they are an Investment Firm subject to MiFIR transaction reporting obligations will be offered the option to delegate their reporting obligations to their relevant IB Broker.

Some transactions executed by these Investment Firms will be reported under “Enriched Reporting” obligations. For these trades the IB Broker will add details about the Investment Firm to its own reports, satisfying the reporting obligations of the Investment Firm. Other transactions will only be reported on behalf of Investment Firms on a delegated basis, as separate reports in addition to the IB Broker's own reports. Clients will only need to sign one agreement with their IB Broker to cover both types of reporting.
 

Information to Be Reported
The reporting fields increased from 23 under the MiFID I regime to 65 under MIFIR. The new information requirements now include, among other items:

  • Detailed identification of the buyer and the seller for each transaction. In particular, the Regulation requires the provision of Legal Entity Identifiers (“LEI”) for legal entities and National Identifiers for natural persons (based on their countries of citizenship).
  • Identification of the Decision Maker for the buyer and the seller when a third-party exercises discretion:
    • A person other than the account holder on an individual or joint account, or a third-party entity.
    • A third-party other than the authorised traders on the account for an organisation account (e.g. a Financial Advisor trading for its clients’ subaccounts).

This information is not required where the account holder is self-trading or where authorised traders are trading for their own organisation.

  • Identification of the person or algorithm that is responsible at the reporting firm for making the investment decision or for the execution of a transaction. This information is required for EEA Investment Firms that use our reporting services.
  • For Commodity Derivatives Transactions, an indication as to whether such Commodity Derivatives Transactions reduce risk in an objectively measurable way in accordance with Article 57 of MiFID II; This is applicable to organisation accounts only when the holder is a non-financial entity.

The new information affects Interactive Brokers clients in different ways depending on whether the client is an EEA Investment Firm, or an organisation/person that is not an Investment Firm, and also depending on whether the financial instruments being traded are carried by their IB Broker or another Interactive Brokers Group affiliate.
 

Implications for IB Clients that are not Subject to MiFIR Transaction Reporting Obligations
In order to meet its own reporting obligations, each IB Broker is obliged to identify and report its immediate client for each transaction executed. The reporting must contain the new client identifiers mandated by the Regulations.

Therefore, each IB Broker will need to obtain and report a client identifier for:

  • The IB Broker's direct clients that hold an account to trade financial instruments carried by the IB Broker;
  • Clients that are EEA Investment Firms and utilise the Interactive Brokers reporting services;
  • Clients that are subaccounts of an EEA Investment Firm that uses the Interactive Brokers platform and utilises our reporting services.

See KB2976 for further details on the information required from account holders that are not directly subject to MiFIR.

 

Note: For a listing of common MiFIR definitions and terms, see KB2980

 

THIS INFORMATION IS GUIDANCE FOR INTERACTIVE BROKERS CLEARED CLIENTS ONLY. THIS GUIDANCE DOES NOT APPLY TO EXECUTION ONLY ACCOUNTS.

NOTE: THE INFORMATION ABOVE IS NOT INTENDED TO BE A COMPREHENSIVE OR EXHAUSTIVE GUIDANCE AND IT IS NOT A DEFINITIVE INTERPRETATION OF THE REGULATION, BUT A SUMMARY OF MiFIR TRANSACTION REPORTING OBLIGATIONS.
 

Prioridad u órdenes de clientes profesionales

En el cuarto trimestre de 2009, ciertos mercados de opciones estadounidenses (CBOE, ISE) implementaron normas que sirven para distinguir órdenes que se originen de un grupo de clientes públicos considerados "profesionales" (es decir, personas físicas o jurídicas que tengan acceso a información o tecnología que les permita operar como un bróker-díler), en contraste con minoristas.  De acuerdo con estas reglas, cualquier cuenta de cliente que no sea de bróker- díler y que introduzca más de 390 órdenes de opciones cotizadas (tanto si se ejecutan como si no) en un promedio diario entre todos los mercados de opciones en un mes dado para beneficio de sus propias cuentas serán clasificadas como Profesional. Desde la implementación original por parte de CBOE y ISE, la mayoría de los mercados de opciones estadounidenses han implementado de forma similar normas para distinguir órdenes "profesionales" en su origen.

Las órdenes enviadas en nombre de clientes profesionales a estos mercados de opciones se tratarán de la misma forma que las órdenes de brókeres-díleres a efectos de prioridad de ejecución y estarán sujetas a una tarifa de transacción por contrato que podrá variar entre reducciones de ($0.65) hasta un cargo de $1.12 (dependiendo de la clase de opciones). 

Los brókeres deben realizar una revisión de forma trimestral para identificar a aquellos clientes que hayan excedido el umbral de las 390 órdenes para cualquier mes de dicho trimestre y que deban ser considerados profesionales para el siguiente trimestre natural. Tenga en cuenta que, a efectos de esta norma, las órdenes de diferencial se consideran una sola orden, en lugar de considerar cada tramo del diferencial como una orden separada. Los clientes afectados por estas normas serán notificados por IB.  Además, el enrutado Smart de IB está diseñado para tomar estas tarifas de mercado en consideración al realizar las decisiones de enrutado.

Para ver detalles adicionales, consulte los siguientes enlaces:

ISE Regulatory Circular 2009-179

CBOE Regulatory Circular RG09-148

Common Reporting Standard (CRS)

The Common Reporting Standard (CRS), referred to as the Standard for Automatic Exchange of Financial Account Information (AEOI), calls on countries to obtain information from their financial institutions and exchange that information with other countries automatically on an annual basis. The CRS sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
 
Interactive Brokers will comply with the OECD's Common Reporting Standard – Automatic Exchange of Information (CRS-AEOI).
 
  • What is reported:
    • Name
    • Address
    • Tax ID Number
    • Tax Country
    • Date of Birth
    • Place of Birth
    • Year-end account balance
    • Gross Proceeds (all sales)
    • Interest income
    • Dividend income
  • To whom is the information reported:
    • For accounts held by the Interactive Brokers U.K. entity, the above information will be reported to HM Revenue & Customs of the United Kingdom. (During the first reporting period in May 2017, only Jurisdiction 1 countries will be reported.) The list can be found on the OECD website by clicking here http://www.oecd.org/tax/transparency/AEOI-commitments.pdf
    • For accounts held by Interactive Brokers Hong Kong entity, the above information will be reported to Inland Revenue Department of Hong Kong.
    • For accounts held by Interactive Brokers Japan entity, the above information will be reported to National Tax Agency of Japan
    • For accounts held by Interactive Brokers India entity, the above information will be reported to Income Tax Department of India
    • For accounts held by Interactive Brokers Canada entity, the above information will be reported to the Canada Revenue Agency
    • For accounts held by Interactive Brokers LLC, there is no reporting since the United Sates has not signed the CRS.
  • When will reporting take place and for what timeframe:
    • For IB UK accounts, the information will be reported for the first time in May 2017 for the calendar year 2016
    • For IB India, the information will be reported for the first time in May 2017 for the calendar year 2016
    • For IB HK, the information will be reported for the first time in May 2018 for the calendar year 2017
    • For IB Japan, the information will be reported for the first time in May 2018 for the calendar year 2017
    • For IB Canada, the information will be reported for the first time in May 2018 for the calendar year 2017
    • Non-Disclosed Introducing Brokers are responsible for their own reporting

 

SEC Tick Size Pilot Program

Background

Effective October 3, 2016, securities exchanges registered with the SEC will operate a Tick Size Pilot Program ("Pilot") intended to determine what impact, if any, widening of the minimum price change (i.e., tick size) will have on the trading, liquidity, and market quality of small cap stocks.  The Pilot will last for 2 years and it will include approximately 1,200 securities having a market capitalization of $3 billion or less, average daily trading volume of 1 million shares or less, and a volume weighted average price of at least $2.00.

For purposes of the Pilot, these securities will be organized into groups that will determine a minimum tick size for both quote display and trading purposes. For example, Test Group 1 will consist of securities to be quoted in $0.05 increments and traded in $0.01 increments and Test Group 2 will include securities both quoted and traded in $0.05 increments.  Test Group 3 will include also include securities both quoted and traded in $0.05 increments, but subject to Trade-at rules (more fully explained in the Rule). In addition, there will be a Control Group of securities that will continue to be quoted and traded in increments of $0.01. Details as to the Pilot and securities groupings are available on the FINRA website.

 

Impact to IB Account Holders 

In order to comply with the SEC Rules associated with this Pilot, IB will change the way that it accepts orders in stocks included in the Pilot.  Specifically, starting October 3, 2016 and in accordance with the phase-in schedule, IB will reject the following orders associated with Pilot Securities assigned to Test Groups:

  • Limit orders having an explicit limit that is not entered in an increment of $0.05;
  • Stop or Stop Limit orders having an explicit limit that is not entered in an increment of $0.05; and
     
  • Orders having a price offset that is not entered in an increment of $0.05.  Note that this does not apply to offsets which are percentage based and which therefore allow IB to calculate the permissible nickel increment

 Clients submitting orders via the trading platform that are subject to rejection will receive the following pop-up message:

 

 The following order types will continue to be accepted for Pilot Program Securities:

  • Market orders;
  • Benchmark orders having no impermissible offsets (e.g., VWAP, TVWAP);
  • Pegged orders having no impermissible offsets ;
  • Retail Price Improvement Orders routed to the NASDAQ-BX and NYSE as follows:
    - Test Group 1 in .001

      - Test Group 2 and 3 in .005

     
 

Other Items of Note

  • GTC limit and stop orders entered prior to the start of the Pilot will be adjusted as allowed (e.g., a buy limit order at $5.01 will be adjusted to $5.00 and a sell limit at $5.01 adjusted to $5.05).
  • Clients generating orders via third-party software (e.g., signal provider), order management system, computer to computer interfaces (CTCI) or through the API, should contact their vendor or review their systems to ensure that all systems recognize the Pilot restrictions.
  • Incoming orders to IB that are marked with TSP exception codes from other Broker Dealers will not be acted upon by IB. For example, IB will not accept incoming orders marked with the Retail Investor Order or Trade-At ISO exception codes.
  • The SEC order associated with this Pilot is available via the following link: https://www.sec.gov/rules/sro/nms/2015/34-74892-exa.pdf
  • For a list of Pilot Program related FAQs, please see KB2750

 

Please note that the contents of this article are subject to revision as further regulatory guidance or changes to the Pilot Program are issued.

 

 

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