MiFID II T+1 transaction reporting obligations (under RTS 22) are by now reasonably well-understood, thanks to the publication of Level 3 draft guidance in December 2015 and the work done within firms to understand how this will apply to them. This is not to say that there won’t be challenges – firms with thousands of national identifiers to collect before January 2018 certainly face an uphill struggle. But at least the size of the mountain to be climbed is reasonably apparent.
The reportability of transactions on the day following execution will be determined not by logical inference but by consulting the Financial Instrument Reference Data (FIRD) index, published daily by ESMA. ESMA’s FIRD will be compiled from aggregated data (venue-listed instruments and benchmark indices) received the previous night from National Competent Authorities.
To qualify as reportable, a transaction must involve the trading of an instrument found on the ESMA published list or the trading of a derivative where the underlying instrument is on the FIRD list.