Transaction reporting

For the purposes of transaction reporting, investment service providers refer to investment firms authorised under Directive 2014/65/EU (MiFID II) and credit institutions authorised under Directive 2013/35/EU of the European Parliament and of the Council when providing investment services and/or performing investment activities and to market operators including any trading venues they operate.

Financial instruments subject to reporting are defined in Article 26 (2) of MiFIR. According to the definition, financial instruments subject to reporting are:

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;
3. financial instruments where the underlying is an index or a basket composed of financial instruments traded on a trading venue.

1. The reporter registers for the SFTP service using a form that includes, among other things, the public key of the SSH key pair you generate.
2. The Finnish Financial Supervisory Authority (FIN-FSA) sends the SFTP credentials and passwords to the reporter via secure email.
3. Submit the transaction report as a file using the SFTP connection.

   SFTP Connection Guide

  Technical reporting instructions (information about naming conventions etc.).

The Financial Supervisory Authority processes incoming files continuously throughout the day, but feedback messages are sent between 19:00 and 06:00.

Test transaction reporting before beginning production reporting. You register to the test service in the same way as to the production service.

Both parties to a transaction, where they are investment service providers, report for themselves. However, the following information in both reports must match: venue, transaction time, volume, price, currency, up-front payment, currency of up-front payment and details of the financial instrument.

The overall view provided by the transaction reports must describe the changes in the reporter’s position or its client’s position due to the transaction. The reports must also indicate the roles of the reporter, the counterparty, any clients, and those acting on behalf of clients by proxy.

Transmitted orders shall be reported or arrangements shall be made for reporting them by the receiving investment service provider.

A transaction shall be reported on several reports if required by the type of transaction. The same transaction may call for several transaction reports for example if an executed transaction is allocated to several clients.

Changes and topical matters concerning transaction reporting are communicated in the Markets in financial instruments (MiFID II and MiFIR) newsletters (available only in Finnish).

The most recent newsletters can be found on the Newsletters and further information sheet for the MiFID II and MiFIR regulatory framework.

You can subscribe to the newsletter by completing the registration form.

• MiFIR Reporting
• ESMA Q&A search
• ESMA Guidelines: Transaction reporting, order record keeping and clock synchronisation under MiFID II

• Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 Text with EEA relevance
• Commission Delegated Regulation (EU) 2017/590 of 28 July 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the reporting of transactions to competent authorities
• Määräykset ja ohjeet 2/2018 Kaupparaportointi, tarjouskirjanpito ja kellotahdistus MiFID II:n mukaisesti (in Finnish)

Notifications of errors or omissions in transaction reporting are made in FIN-FSA e-services. 

According to Article 15(2) of Commission Delegated Regulation (EU) 2017/590 (RTS 22), investment firms must notify the FIN-FSA of any errors or omissions they become aware of in transaction reporting.

Use of e-services requires strong identification of the user. Users must identify themselves using the Suomi.fi service. Users notifying errors or omissions in transaction reporting must have a transaction reporting authorisation in order to send transaction reporting error notifications on behalf of a firm. A transaction reporting error notification form can be found in the investment services section of FIN-FSA e-services.

A registration application for the transfer of book-entry securities from the account of the dissolving entity to the account of the recipient may only be submitted after the entity has already been removed from the Trade Register. It is no longer possible for a dissolved entity to obtain an LEI code. It is therefore no longer possible to make a transaction report.

Answer:

• Primarily, financial instrument transactions should be executed before the entity is dissolved. If, despite everything, the entity has already been dissolved, the details of the transaction or transfer must be reported to the Finnish Financial Supervisory Authority (FIN-FSA).
• In this case, please provide us with basic information about the transactions by email: kaupparaportointi@finanssivalvonta.fi
  • Buyer
  • Seller
  • Place of execution
  • Amount and amount currency
  • Price and price currency
  • Time of execution
  • Financial instrument (ISIN code)

How does one report transfers from an entity that has been removed from the Trade Register other than through liquidation proceedings but has not ceased to exist and no longer has any other reason to apply for an LEI code (e.g. assets to be realised are below the annual fee for an LEI code)? A registration application for the sale/transfer of book-entry securities from the entity’s account to the recipient’s account may only be submitted after the entity has been removed from the register. An entity removed from the register does not receive an LEI code from the Finnish Patent and Registration Office, although it could potentially receive one from another Local Operating Unit (LOU). It is therefore not possible to make a transaction report using the entity’s LEI code.

Answer:

• Primarily, an effort should be made to return the entity to the Trade Register or otherwise obtain an LEI code. The entity has assets in the book-entry account, however, so it is not completely empty. If it is not possible to restore the business ID and apply for an LEI code, then reporting is done in the same way as in the previous answer.

Can the LEI code of the National Enforcement Authority (Ulosottolaitos) be used when foreclosed shares of an entity are sold/bought, and the entity subject to foreclosure does not have an LEI code?

Answer:

• The Commission Delegated Regulation (EU 2017/590) does not provide for any exceptions but, in the view of the FIN-FSA, a literal application of the requirement in a foreclosure situation is not necessary with regard to the regulatory objectives (the FIN-FSA’s ability to monitor trading) and would lead, in practice, to an unreasonable outcome. We therefore consider that in such a specific situation (foreclosure), the account operator may execute the order and report it to the FIN-FSA using the LEI code of the National Enforcement Authority.

What should be done if the person making the buy or sell decision is a public guardian, and the reporting entity does not know the guardian’s personal identification number?

Answer:

• Primarily, the correct personal identification number of the decision-maker should be reported as the decision-maker. In this situation, however, obtaining a personal identification number may be challenging due to, among other things, other legislation, so an artificial ID issued by Euroclear Finland (so-called X ID) can be used as the identification code in reporting. Reporting should, in this case, be done using the normal reporting channel, and the X ID should be entered in the report in the same way as a personal identification number (i.e. starting with FI).

The XML schema can be found on the ESMA website.

Up to 500 000 transactions can be included in a single file. There is no limit on the number of daily files, but we would prefer to receive large “grouped” files, i.e. not individual transactions in real time.

An ARM is, according to Article 4(54) of MiFID II, “a person authorised under this Directive to provide the service of reporting details of transactions to competent authorities or to ESMA on behalf of investment firms”. In other words, an ARM is a third party that an investment firm can authorise to report transactions on its behalf. If you intend to report transactions on behalf of an investment firm, you must apply for authorisation as an ARM.

If changes have been made to previously reported transactions, the FIN-FSA urges entities to make the corrections without delay. Reported data can be corrected for up to five years.

If a transaction report is rejected with error code CON-412, this may be because the transaction does not relate to the instrument subject to the reporting obligation or the reported trading date is before the listing request for the instrument or before the commencement of trading in the ESMA database. In some cases, there may also be problems with the transfer of reference data from ESMA to the FIN-FSA, which in turn may cause problems in the validation of transactions.

If the reporting entity suspects that reference data sent by a Finnish trading venue are incorrect, the FIN-FSA recommends that the entity first contact the trading venue in question to verify the data and then contact the FIN-FSA, which may contact the trading venue. If the reference data have been provided by a foreign trading venue, the entity should contact the FIN-FSA, which in turn will contact the competent authority of the foreign country concerned, which will contact the trading venue. The FIN-FSA can be contacted on reporting issues at kaupparaportointi@finanssivalvonta.fi.  

If the reporting entity finds that the data of the transaction report corresponds to the data in the FIRDS database, but the report is still rejected with error CON-412, the FIN-FSA should be contacted, as there may be a problem with data transfer between FIRDS and the FIN-FSA.

Reference data under the MAR and MiFID/MiFIR statutes and currently available can be found in ESMA’s Financial Instruments Reference Data System (FIRDS). A link to FIRDS and further information on downloading data can be found on the ESMA website.