EuroCCP is pleased to advise its clearing participants (CPs) of the impact of MiFID II and MiFIR (hereafter jointly referred to as MiFID II) on its service offering.
A. New dealing capacities.
MiFID II will introduce a number of new dealing capacities:-
- Dealing on own account (DEAL)
- Matched Principal (MTCH)
- Any Other Trading Capacity (AOTC).
The new MIFID II dealing capacities will be converted and reported by EuroCCP as follows:-
|(New) MiFID II dealing capacities||Converted and reported by EuroCCP into|
|Dealing on own account (DEAL)||Principal*|
|Matched principal (MTCH)||Principal*|
|Any Other Trading Capacity (AOTC)||Agent*|
* For CP’s whose netting rules make a distinction between agency and principal, the mapping will be done accordingly. Furthermore, and as a reminder, the distinction in this context between Agent and Principal is also relevant for transactions that are subject to Stamp Duty Reserve Tax (SDRT) in the UK.
Please ensure your Trading Participants are aware of the above mappings and in particular, the AOTC capacity mapping to Agency in the UK market, which are subject to SDRT as stated above.
Impact: no further action is required by the clearing participants.
B. Time stamping
MiFID II stipulates minimum granularity requirements for the recording of the date and time (using Coordinated Universal Time as the benchmark) for reportable events by operators of trading venues and their members or participants. This will allow competent authorities to distinguish between different reportable events which may otherwise appear to have taken place at the same time.
Under MiFID II trading platforms may include microseconds in their trade messages to EuroCCP. Irrespective of the trade message timestamp received by EuroCCP, EuroCCP’s trade reporting to CPs will at all times include a time stamp in seconds (HH:MM:SS).
Impact: no further action is required from clearing participants