Overview of CFTC Form 40

The CFTC, the primary regulator of U.S. commodity futures markets and Futures Commission Merchants (FCMs), operates a comprehensive system of collecting information on market participants as part of its market surveillance and large trader reporting program.

IBKR, as a registered FCM providing clients with access to those markets, is obligated to report to the CFTC information on clients who hold a position in a quantity that exceeds defined thresholds (i.e., a "reportable position").  In order to report this information, IBKR requires clients trading U.S. futures or futures options to complete an online CFTC Ownership and Control Reporting form at the point the client requests futures trading permissions.

Once a client holds a "reportable position", the CFTC may then contact that client directly and require them to file  more detailed information via CFTC Form 40. The information required of this report includes the following:

  • Trader's name and address
  • Principal business
  • Form of ownership (e.g., individual, joint, partnership, corporation, trust, etc.)
  • Whether the reporting trader is registered under the Commodity Exchange Act
  • Whether the reporting trader controls trading for others
  • Whether any other person controls the trading of the reportable trader
  • Name and location of all firms through which the reportable trader carries accounts
  • Name and location of other persons providing a trading guarantee or having a financial interest in account of 10% or greater
  • Name of accounts not in the reporting trader's name in which the trader provides a guarantee or has a financial interest of 10% or more.

Clients who fail to complete this Form in a timely manner may be subject to trading restrictions and/or fines imposed by CFTC upon their account at the FCM.  It is therefore imperative that clients immediately respond to these CFTC requests.

To complete the CFTC Form 40, clients must first register for a CFTC Portal Account, an online process which is subject to a review period of 2 business days from the point of initial registration to acknowledgement of approval by the CFTC.  For information regarding this registration process and completing the Form 40, see KB3149.

 

MiFIR下EEA投资公司委托交易报告及其增强版

全新的2014/65/EC号指引(“MiFID II”)和(欧盟)600/2014 号法规(“MiFIR”)为报告由EEA投资公司执行的MiFID II下金融产品交易提出了新要求。(“MiFIR交易报告”)

谁受MiFIR交易报告要求约束?
所有欧洲经济区(“EEA”)投资公司均受新规约束,须在MiFIR覆盖的金融产品交易执行的一个工作日内报告所有交易。

盈透证券(英国)有限公司(“IBUK”)将向所有符合EEA投资公司定义的盈透证券集团(“IB”)客户提供协助,使其遵守新规要求。

除了使用IB平台的综合经纪商(其所有下属客户的头寸都保有在一个或多个综合账户中)外,所有作为EEA投资公司的IB客户都可选择要求IBUK代其履行报告义务。IBUK将通过法规要求的两种不同的报告机制代客户报告,即增强版交易报告和委托交易报告。

 

增强版交易报告
根据委员会委托监管条款(欧盟)2017/590第4条的规定,若IBUK将EEA投资公司(“定单传递公司”)提交的定单之详情纳入了其自己的交易报告,则定单传递公司可免于报告此类交易。

增强版交易报告仅适用于EEA投资公司代表其客户就IBUK提供服务的金融产品提交执行指令的交易(比如,财务顾问、基金经理或介绍经纪商账户为其客户子账户提交定单)。

 

委托交易报告
委托交易报告是IBUK向EEA投资公司提供的服务,帮助后者报告其提交的所有其他交易。

这包括投资公司通过其自营账户下达的交易、根据客户给出的全权委托指令提交的交易、以及IBUK不作为服务经纪商的金融产品之交易(即,由另一家IB关联公司担任服务经纪商的金融产品交易)。当交易是由投资公司的客户直接提交时,委托交易报告不适用。

此类报告将被提交给账户“法定住所”的国家主管部门(“NCA”),其中“法定住所”在启用了委托交易报告功能的账户的法律实体识别信息下记录(如,若投资公司的法定住所是荷兰,则交易将被报告给金融市场管理局(AFM))。

客户只需与IBUK签署一份协议即可同时覆盖增强版交易报告和委托交易报告。


如何使用增强版和委托交易报告服务
EEA投资公司(非披露介绍经纪商和综合介绍经纪商除外)将被要求在账户管理中完成一份电子表格,届时投资公司可选择使用IB的增强版或委托交易报告服务。

鉴于IB可能没有非披露介绍经纪商下属客户的完整身份信息,作为非披露介绍经纪商的投资公司不会收到以上电子表格,除非他们主动联系IB的客户服务部门,请求使用IBUK的增强版交易报告或委托交易报告服务并提供相应的信息。

IB平台上作为综合介绍经纪商的EEA投资公司无法使用增强版交易报告和委托交易报告服务。

使用IB的增强版和委托交易报告服务的EEA投资公司需签署相关法律协议并提供以下信息:

  • 法律实体识别信息(“LEI”)。没有法律实体标识的客户可通过IBUK申请一个标识;
  • 相关国家客户识别要求规定的每个经授权交易者的公民身份及更多信息;
  • 投资公司内负责做投资决策的个人或算法;
    1. 之前被选为公司内部的投资决策者的活跃个人交易者。只允许是被授权作为账户交易者的个人;
    2. 公司可能用来做投资决策的算法的识别信息。客户有义务根据法规要求确定并提供算法识别信息。

新规将如何影响IB账户管理和定单输入系统
提交交易报告所需的某些信息可能视单个定单而不同,也可能要求提交交易的人提供信息。因此,IB已升级了IB账户管理系统及定单输入系统,使交易者得以提供所需的信息。

想要使用IB增强版和委托交易报告服务的账户应指定经授权的交易者,并提供做投资决策的算法的ID列表。

账户管理中列出的交易者和算法会在提交定单时于交易者工作站新增的下拉列表中显示。该区域会显示账户管理中选择的默认值。客户可在下拉列表中选择其他值。

IB交易者工作站将允许启用了增强版和委托交易报告功能的账户下经授权交易者就提交的特定定单选择公司内负责做投资决策的个人或算法。

 :常见MiFIR定义和条款列表,请见KB2980

 

本信息仅用于指导使用盈透证券清算服务的投资公司。本信息不适用于仅使用执行服务的账户。

注意:以上信息不作为全面穷尽式指南,也不是对法规的权威性解释,而是对MiFIR交易报告义务的总结。

 

MiFIR定义和条款

欧洲经济区(EEA) - 截至2017年10月,EEA由以下国家组成:奥地利、比利时、保加利亚、克罗地亚、塞浦路斯共和国、捷克共和国、丹麦、爱沙尼亚、芬兰、法国、德国、希腊、匈牙利、冰岛、爱尔兰、意大利、拉脱维亚、列支敦士登、立陶宛、卢森堡、马耳他、荷兰、挪威、波兰、葡萄牙、罗马尼亚、斯洛伐克、斯洛文尼亚、西班牙、瑞典和英国。


投资公司 - MiFID II第4 (1) (1)条将投资公司定义为以向第三方提供一项或多项投资服务为常规职能或业务的法人,及/或以专业的方式开展一项或多项投资活动的法人。该框架涉及的投资服务和活动在MiFID II附录I的A部分列出。
 

执行的交易 - 就MiFIR交易报告而言,“交易”指完成买卖MiFIR覆盖的金融产品。当一笔交易是由于投资公司完成以下活动而产生时,该笔交易视为被执行:

  1. 接收或传递与一种或多种金融产品有关的定单(委员会委托监管条款(欧盟)2017/590号第4条规定的特例除外);
  2. 代表客户执行定单;
  3. 用自有账户交易;
  4. 根据客户给出的投资指令做投资决策;
  5. 向账户中转入或从账户中转出金融产品。

[参考:委员会委托监管条款(欧盟)2017/590号第2条和第3条]
 

MiFIR覆盖的金融产品 - (欧盟)法规第600/2014号第26 (2)条(MiFIR)规定了与以下金融产品交易有关的交易报告义务,不论此类交易是否在交易场所进行:

  1. 在交易场所交易、获准在交易场所交易或已提交申请、希望获准在交易场所交易的金融产品;
  2. 底层证券是在交易场所交易的金融产品的金融产品;以及
  3. 底层证券是由在交易场所交易的金融产品构成的指数或篮子的金融产品。

该法规覆盖的金融产品在MiFID II的C部分作了法律上的列举:
(1) 可转让证券;
(2) 货币市场产品;
(3) 集合投资活动的单位;
(4) 与证券、货币、利率或回报率、排放配额或其它衍生产品、金融指数或金融指标有关的,且可用实物或现金结算的期权、期货、互换、远期利率协议及任意其它衍生品合约;
(5) 与大宗商品有关的,且必须以现金结算或在未发生违约或其它终止事件的情况下可由交易的一方选择以现金结算的期权、期货、互换、远期及任意其它衍生品合约;
(6) 与大宗商品有关、且可用实物结算的期权、期货、互换及任意其它衍生品合约,前提是此类合约在受监管的市场、多边交易设施(MTF)或有组织交易设施(OTF)上交易,但在OTF上交易且必须以实物结算的批发能源产品除外;
(7) 可用实物结算但未在本段第6点中提及的与大宗商品有关的期权、期货、互换、远期及任意其它衍生品合约,此类合约不用于商业用途,而具有其它衍生金融产品的特点;
(8) 用于转移信用风险的衍生品;
(9) 金融差价合约;
(10) 与气候变量、运费率、通货膨胀率或其它官方经济指标有关的,且必须以现金结算或在未发生违约或其它终止事件的情况下可由交易的一方选择以现金结算的期权、期货、互换、远期利率协议及任意其它衍生品合约,以及与资产、权利、义务、指数及本部分未提及的指标有关、且在某些方面(包括但不限于是否在受监管的市场、OTF或MTF上交易)具有其它衍生金融产品的特征的任意其它衍生品合约;
(11) 由2003/87/EC号法令(排放交易机制)承认的任意单位构成的排放配额。
 

IBUK提供服务的金融产品- 客户和IBUK间的协议覆盖的产品,目前包括某些股票、指数期权、期货和期货期权以及诸如差价合约(“CFD”)、外汇及/或外汇差价合约和贵金属的场外(“OTC”)产品。

 

非由IBUK提供服务的金融产品- 客户和IBUK间的协议不覆盖的产品,因为此类产品由“执行和清算协议通知” [协议链接]、“盈透证券有限公司客户协议”或其它协议覆盖。


国民身份识别信息 - 在MiFIR下,自然人必须根据特定国民识别信息的优先级要求报告该识别信息,其中优先级取决于MiFIR认可的国籍。身份识别信息可为护照、身份证、税务代码、个人代码或全名和生日的串联(“串联”)。IBUK只要求客户提供IBUK尚未获得的国民身份识别信息。
 

法律实体标识(“LEI”)= 一个基于ISO 17442的由20字符构成的独特识别信息,用于在全球范围内识别参与金融交易的法律实体。
 

能以客观可衡量的方式降低风险的大宗商品衍生品交易- 在报告大宗商品衍生品交易时,IBUK须说明该交易根据2014/65/EU号指引第57条(第57条)是否能以客观可衡量的方式降低风险。
仅当此类交易是来自非金融实体持有的账户,且根据第57条,此类实体通过该账户交易大宗商品衍生品的目的是客观降低与其业务活动直接有关的风险时,IBUK才会允许此类交易。(如生产小麦的公司交易此类衍生品以对冲业务活动的风险)。

在账户管理的交易权限部分作出以上声明的账户持有人同意,该账户执行的所有大宗商品衍生品交易的目的都是第57条规定的降低风险,且IBUK会相应地报告相关交易。


在有报告义务的公司负责做投资决策的个人或算法 - 在MiFIR下,投资公司有义务在交易报告中列明公司内负责就买/卖金融产品做投资决策的主要负责人或算法。只有单个个人或算法可被认定为是某笔交易的负责人,而投资公司必须根据委员会委托监管条款(欧盟)2017/590号第8条的规定报告此类个人或算法。

考虑到此类报告要求,IBUK已在账户管理和IB交易者工作站中推出了新的板块和新功能,帮助通过IBUK报告交易的投资公司按新法规的要求报告相关个人和算法。


在有报告义务的公司负责执行交易的个人 - 委员会委托监管条款(欧盟)2017/590号第9条要求投资公司报告决定接入哪个交易场所[…]、向哪家公司传递定单或与定单执行有关的任意其它条件的个人或算法。对于大多数交易报告,本要求仅适用于IBUK,但由于IBUK通常是执行交易的实体,当一家通过委托交易报告计划委托IBUK报告交易的投资公司提交定单时,提交定单的特定用户将被作为负责执行交易的个人进行报告。
 

委员会委托监管条款(欧盟)2017/590号第4条 - 定单传递

1. 仅当以下条件被满足后,根据(欧盟)第600/2014号法规第26(4)条传递定单的投资公司(定单传递公司)才被视为传递了该定单:

(a) 定单来自其客户或源于其根据一位或多位客户向其提供的全权委托指令购入或处置特定金融产品的决定;

(b) 定单传递公司已将第2段中提及的定单详情传递给了另一家投资公司(定单接收公司);

(c) 定单接收公司受(欧盟)第600/2014号法规第26(1)条之约束,且同意报告该定单的交易或根据本条款将定单详情传递给另一家投资公司。
 

就上述第一子段第(c)点而言,协议应明确定单传递公司向定单接收公司提供定单详情的时间限制,并规定定单接收公司应核实其收到的定单详情是否包含明显的错误或遗漏,然后方可提交交易报告或根据本条款传递定单。

2. 就某个给定的定单而言,应根据第1段传递以下定单详情:

(a) 金融产品的识别码;

(b) 定单的目的是收购还是处置金融产品;

(c) 定单中列明的价格和数量;

(d) 定单传递公司的客户就定单而言的标识和详细信息;

(e) 当投资决策是根据代理权做出时,应表明客户的决策者的标识和详情;

(f) 识别做空交易的标识;

(g) 识别在定单传递公司内负责做投资决策的的个人或算法的指示;

(h) 投资公司内负责监督做投资决策的个人的分支所在的国家,及从客户处收到定单或根据客户的全权委托指令代表客户做投资决策的分支所在的国家;

(i) 对于大宗商品衍生品定单,表明该交易根据2014/65/EU号指引第57条是否旨在以客观可衡量的方式降低风险;

(j) 定单传递公司的识别码。

就第一子段第(d)点而言,当客户为自然人时,应根据第6条标识客户。就第一子段第(j)点而言,当传递的定单是接收自未按本条款的要求传递定单的前一家公司,识别码应为识别定单传递公司的代码。当传递的定单是接收自按本条款的要求传递定单的前一家传递公司,则第一子段第(j)点中的代码应为识别前一家传递公司的代码。 

 3. 当某个定单涉及一家以上传递公司时,第2段第一子段(d)到(i)点中所指的定单详情应针对第一家传递公司的客户。

4. 当定单包含多个客户时,第2段所指的信息应针对单个客户传递。
 

更多信息请见:

MIFIR交易报告概况

MiFIR下EEA投资公司委托交易报告及其增强版

无报告义务的账户持有人需提供的MiFIR信息

 

无报告义务的账户持有人需提供的MiFIR信息

MiFIR交易报告体系要求诸如IBUK的EEA投资公司在其交易报告中包括特定的客户识别信息。

交易由盈透证券(英国)有限公司(“IBUK”)提供服务的金融产品的账户需使用特定的识别信息在IBUK的报告中标识自己的身份,IBUK目前可能已知此类识别信息,也可能未知。

同样地,使用IB平台执行客户定单并选择由IBUK处理交易报告的EEA投资公司将需就其客户定单使用类似的识别信息。如您为此类公司的客户,IBUK需向您请求额外的信息以完成交易报告。

相关个人或机构需在2017年11月30日前向IBUK提供此类信息。

需提供的新信息
若IBUK需要额外信息,我们将要求客户在账户管理中填写电子表格来提供此类信息。

此类账户需提供的信息包括:

  • - 作为账户持有人或被授权交易者的自然人的国籍;
  • - 作为账户持有人或被授权交易者的自然人的特定国民身份信息;
  • 法律实体需提供法律实体标识(LEI)。没有法律实体标识的客户可通过IBUK申请。
  • 机构账户需表明该法律实体是否为非金融实体且使用该账户进行大宗商品衍生品交易、并根据MiFID II第57条以客观可衡量的方式降低风险。

 :常见MiFIR定义和条款列表,请见KB2980

本信息仅用于指导使用盈透证券清算服务的客户。本信息不适用于仅使用执行服务的账户。

注意:以上信息不作为全面穷尽式指南,也不是对法规的权威性解释,而是对MiFIR交易报告义务的总结。

MIFIR交易报告概况

背景
2018年1月3日起,全新的2014/65/EC号指引(“MiFID II”)和(欧盟)600/2014号法规(“MiFIR”)将生效,届时2007年通过金融工具市场指引(“MiFID I”)创建的交易报告(“MiFIR交易报告”)框架将发生重大变革。

盈透证券(英国)有限公司(“IBUK”)已推出了一套全新的交易报告体系,以帮助在新法规下有直接报告义务的IBUK和盈透证券集团(“IB集团”)客户遵守新的MiFIR要求。

受影响的客户须在新的报告要求生效日(2018年1月3日)前向盈透证券提供额外的信息,以便继续通过其账户进行交易。盈透证券将通过电子渠道向客户请求所需信息。

受影响的客户须在2017年11月30日前及时提供信息。
 

MiFIR交易报告义务的范围

MiFIR交易报告适用于欧洲经济区(“EEA”)的投资公司,如IBUK,以及使用IBUK或其他盈透证券集团关联公司执行定单的EEA投资公司。如您是IBUK或使用IB平台的投资公司的客户,您将被要求提供额外的信息以便IB恰当地申报交易报告。

EEA投资公司有义务在交易执行的次日收市前向相关国家主管机构(“NCA”)报告MiFIR覆盖的金融产品的交易之完整及准确细节。

MiFIR已拓展了需报告的金融产品范围,以覆盖在EEA监管的交易所、多边交易设施(“MTFs”)及有组织交易设施(“OTFs”)内交易的产品。除了在EEA交易所执行的交易外,MiFIR还覆盖场外(“OTC”)交易及在非EEA交易场所执行的EEA上市金融产品交易,如在伦敦证交所(LSE)上市、但在纽交所(NYSE)交易的股票。(详见MiFIR覆盖的金融产品)。


面向EEA投资公司的MiFIR交易报告解决方案:增强版委托交易报告
确认自身为有MiFIR交易报告义务的投资公司的IB客户可选择将其报告义务委托给IBUK。

IBUK将根据“增强版报告”义务报告某些由此类EEA投资公司执行的交易。对于此类交易,IBUK会在其自身的报告中增加有关投资公司的详细信息,以满足投资公司的报告义务。其它交易将仅以委托的形式代表投资公司报告,即在IBUK自身报告外以独立报告的形式呈现。客户只需与IBUK签署一份协议即可覆盖这两种报告形式。

点此了解有关增强版委托交易报告的更多信息。
 

需报告的信息
需报告的项目已从MiFID I体系下的23项增长至MIFIR下的65项。新增的信息要求包括:

  • 具体地,法规要求法律实体提供法律实体标识(“LEI”)、自然人提供国民身份识别信息(基于国籍)。
  • 当由第三方行使自由裁量权时,需明确买卖双方的决策者:
    • 对于个人或联名账户,指账户持有人以外的个人或第三方实体。
    • 对于机构账户,指账户授权交易者(如为客户子账户交易的财务顾问)以外的第三方。

当账户持有人为自己交易或被授权的交易者是为其自己的机构交易时,不要求提供本信息。

  • 有报告义务的公司负责做投资决策或负责执行交易的个人或算法。使用我们的报告服务的EEA投资公司须提供该信息。点击此处获得更多详情。
  • 对于大宗商品衍生品交易,表明此类大宗商品衍生品交易根据MiFID II第57条是否能以客观可衡量的方式降低风险;本规则适用于机构账户的前提是账户持有人为非金融实体。

新信息要求会以不同的方式影响盈透证券的客户,其影响取决于客户是EEA投资公司,还是投资公司以外的机构或个人,还取决于被交易的金融产品是由IBUK还是其它盈透证券集团的关联公司提供服务的。
 

对无MiFIR交易报告义务的IB客户的影响
为履行IBUK自身的报告义务,IBUK须识别并报告由其执行的每笔交易的直接客户。该报告必须包含法规规定的新的客户识别信息。

因此,IBUK需从以下客户处收集识别信息并报告:

  • 直接持有IBUK账户、用于交易由IBUK提供服务的金融产品的客户;
  • 使用盈透证券报告服务的EEA投资公司客户;
  • 使用盈透证券平台及报告服务的EEA投资公司的子账户客户。

有关不直接受MiFIR管辖的账户持有人需要提供哪些信息,详情请见知识库文章 KB2976

 

:常见MiFIR定义和条款列表,请见KB2980

 

本信息仅用于指导使用盈透证券清算服务的客户。本信息不适用于仅使用执行服务的账户。

注:以上信息不作为全面穷尽式指南,也不是对法规的权威性解释,而是对MiFIR交易报告义务的总结。
 

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 Account Management:

  • Log into Account management.
  • Select Support and then PRIIPs KID, which will take you to our PRIIPs KID Landing Page in Account Management.

Or if are on the Classic Account Management:

  • Select Tools from the Support Tab

  • Select Contract Search and search for the contract you wish to find the KID of.

  • Select the product type you want the KID of. (e.g. Futures)

  • Then select the details of the contract you want, you will be taken to the Contract Details page.

  • Here you can select PRIIPs KID link, which will take you to our PRIIPs KID Landing Page in Account Management.

 

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]
 

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).
 

Financial Instruments Carried by IBUK - The products covered by the agreement between the client and IBUK, which currently include certain stocks, index options, futures and futures options and Over-the-Counter (“OTC”) products such as Contracts for Differences (“CFDs”), Foreign Currencies, and/or Foreign Currency CFDs (“Forex”) and Precious Metals.

 

Financial Instruments NOT carried by IBUK - The products that are not covered by the agreement between the client and IBUK, as they are covered by “Notice of Execution and Clearing Agreement” [Link to the Agreement], by the “Interactive Brokers LLC Customer Agreement” or other agreement.


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”). IBUK 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, IBUK 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”).
IBUK 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 IBUK 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, IBUK 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 IBUK 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 IBUK for the majority of the transactions reports, because IBUK is usually the entity that executes the transaction, when an order is submitted by an Investment Firm that transaction reports through IBUK 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 EEA Investment Firms, like IBUK, to include specific client identifiers in their transaction reports.

Accounts that trade in financial instruments carried by Interactive Brokers (U.K.) Limited (“IBUK”) will need to be identified in IBUK’s reports by using specific identifiers that may or may not be already available to IBUK.

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

This information will have to be provided to IBUK by 30 November 2017.

New 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 IBUK.
  • 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 EEA Investment Firms

A new Directive 2014/65/EC (“MiFID II”) and Regulation (EU) No 600/2014 (“MiFIR”) have introduced new requirements for the reporting of transactions executed by EEA Investment Firms in financial instruments covered by MiFID II. (“MiFIR Transaction Reporting”)

Who is Subject to the MiFIR Transaction Reporting Requirements?
All European Economic Area (“EEA”) Investment Firms are subject to the new requirements and will have to report all transactions executed in financial instruments covered by MiFIR within one working day from their execution.

Interactive Brokers (U.K.) Limited (“IBUK”) will offer assistance to all Interactive Brokers Group (“IB”) clients that are EEA Investment Firms in complying with the new requirements.

With the exception of Omnibus Introducing Brokers 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 IBUK report on their behalf. IBUK 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 IBUK includes details of orders submitted by clients that are EEA 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 IBUK submitted for execution by an EEA 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 IBUK to EEA 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 IB UK 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 IBUK to cover both Enriched and Delegated Transaction Reporting.


How to Sign Up for the Enriched and Delegated Transaction Reporting Service
EEA 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.

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

EEA 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 IBUK;
  • 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”) become 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 (U.K.) Limited (“IBUK”) has implemented a new transaction reporting system that will enable IBUK and Interactive Brokers Group (“IB Group”) clients that have direct reporting obligations under the new Regulation to comply with the new MiFIR requirements.

Affected clients will need to provide additional information to Interactive Brokers in order to continue trading through their accounts when the new reporting requirements become effective on 3 January 2018. Interactive Brokers will be requesting the required information electronically to facilitate its collection.

Affected clients will be requested to provide this information promptly and no later than 30 November 2017.
 

Scope of MiFIR Transaction Reporting Obligations

MiFIR Transaction Reporting applies to European Economic Area (“EEA”) Investment Firms, like IBUK, and also to EEA Investment Firms that use IBUK or other Interactive Brokers Group affiliates to execute orders. As a client of IBUK or 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.

EEA 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 day.

MiFIR has widened the scope of reportable financial instruments to cover those that are traded on EEA Regulated Exchanges, Multilateral Trading Facilities (“MTFs”) and Organised Trading Facilities (“OTFs”). In addition to transactions executed on EEA exchanges, MiFIR will capture Over The Counter (“OTC”) transactions and transactions of EEA listed financial instruments that are executed on non-EEA 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 EEA Investment Firm subject to MiFIR transaction reporting obligations will be offered the option to delegate their reporting obligations to IBUK.

Some transactions executed by these EEA Investment Firms will be reported by IBUK under “Enriched Reporting” obligations. For these trades IBUK 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 IBUK own reports. Clients will only need to sign one agreement with IBUK to cover both types of reporting.
 

Information to Be Reported
The reporting fields have 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 IBUK 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, IBUK 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, IBUK will need to obtain and report a client identifier for:

  • IBUK direct clients that hold an account to trade financial instruments carried by IBUK;
  • 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.
 

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