The FSA published a guidance consultation (GC11/11) on 18 May 2011 proposing a change to its guidance on reporting of on-exchange derivative transactions conducted through exchange platforms.
The FSA has reviewed its current guidance (which relates to the transaction reporting requirements in Chapter 17 of the Supervision manual (SUP)) and, following consultation with firms, trade bodies and exchanges, proposes to revise it to:
- provide clearer and simpler guidance that removes the need to distinguish between transactions for fungible and non-fungible derivative instruments conducted through exchange platforms;
- provide guidance that reflects more accurately the status of transactions and is easier for firms to integrate into their transaction reporting systems; and
- extend the guidance from Alternative Instrument Identifier (Aii) derivative transactions to all derivative transactions (that is, Aii and International Securities Identification Number (ISIN) conducted through EEA derivative exchange platforms.
The guidance consultation sets out the proposed revised guidance, with examples of transaction reporting made in line with it. The FSA acknowledges that firms may have to make system changes to accommodate the revised guidance, which will be effective from 13 November 2011. This is also the implementation date of the FSA’s new surveillance and monitoring system, Zen. However, firms may elect to report transactions in ISIN derivative instruments, and fungible and nonfungible transactions in Aii derivative instruments, conducted through exchange platforms, prior to this date.