Release Notes

Cboe Europe Equities: Transaction Reporting Reminder

February 08, 2019 13:49:38

Dear Cboe Europe Equities Participants,

As part of its Brexit programme, Cboe Europe Equities (Cboe) would like to remind Participants about the transaction reporting requirement imposed on a trading venue when Participants conduct cross border trading. Cross border trading in this context is defined as trading activity conducted on a Cboe venue that is outside of the jurisdiction that the Participant entity is registered. Further information regarding the transaction reporting obligation can be found here. To ensure continuity of access in the event of a hard Brexit, impacted Participants need to certify for a transaction reporting solution by Friday 15th March 2019.

Impacted Participants

Existing non UK or EEA regulated firms will need to continue to transaction report on the relevant Cboe venue, as appropriate.

Post-Brexit, the following Participants will additionally be in scope:

* UK regulated firms who plan on conducting trading activity on the Cboe EU venue post-Brexit

* EEA regulated firms who plan on conducting trading activity on the Cboe UK venue post-Brexit

Trading activity in scope

The only trading activity that is exempt from transaction reporting is end of day on-exchange trade reports (ETRs) that are used for settlement purposes.

Cboe Europe Venue

Jurisdiction of the country that the firm is regulated in

Trading Activity

EU

External to EEA (i.e. UK, Swiss etc)

Order Book Executions
Cboe LIS Direct User
Cboe LIS Designated Broker
Single Party ETR not submitted for EOD settlement
Multi-Party ETR not submitted for EOD settlement
Third Party Broker ETR

UK

External to UK (i.e. EEA, Swiss etc.)

Order Book Executions
Cboe LIS Direct User
Cboe LIS Designated Broker
Single Party ETR not submitted for EOD settlement
Multi-Party ETR not submitted for EOD settlement
Third Party Broker ETR

Transaction Reporting Solutions

Cboe Regulatory Transaction Reporting Gateway
Participants can use the Cboe Regulatory Transaction Reporting Gateway (RTRG) service to submit transaction reports to Cboe Europe who will then forward them onto the required regulator. The specification for this service can be found here and Participants who need to begin using this service should contact Trade Desk to begin on-boarding .

Cboe Deal Capacity Offering
The introduction of participant short code information on orders through MIFID II means that (if used correctly) Cboe Europe have the information required to generate transaction reports for clients conducting trading activity in a Deal (Principal) capacity. Participants opting in to this offering will have transactions for their order book executions generated and sent to the required regulator by Cboe. Please note that at this time, ETRs are excluded from this service and therefore any non EOD ETR transactions will need to be submitted to Cboe Europe via the RTRG.

Participants can opt in to this offering at a bank code (clearing firm) level. Any bank codes that have opted in, which submit orders matching the below, along with any non EOD ETRs, will be rejected:

* AOTC (Agency) orders

* MITCH (Riskless) orders

* Orders submitted without both an execution and investment short code

* Orders submitted with non-registered short codes. For a registration to be considered valid, it must be uploaded by 5am UK time on the day it is to be used. Any registrations after this time will not take effect until the next trading day.

In addition, Participants must:

* use the Side flag on their orders to indicate if they are short selling; and,

* use the 1st priority format given in Annex II of Delegated Regulation (EU) 2017/590 when identifying natural persons in their investment decision maker or execution decision maker long codes (see Cboe Identifier Management Specification)

Participants will be able to elect to opt in to this functionality in Certification (UAT) from Monday 25th February 2019. Participants wishing to use this offering should contact their Account Manager who can provide the next steps.

Certification Deadlines

Impacted Participants who have not certified for a transaction reporting solution by Friday 15th March 2019 will risk having any existing UK or EU bank codes (depending on entity registration) suspended from trading post-Brexit.

All current and historical Cboe Europe notices, including symbol universe updates, are available online at http://markets.cboe.com/europe/equities/notices/schedule_update/.

Please contact the Trade Desk or your Account Manager if you have any questions.

Trade Desk,
Cboe Europe Equities
11 Monument Street | London, EC3R 8AF
T: +44 20 7012 8901
E: [email protected] | cboe.com >
* Cboe Europe Limited is a Recognised Investment Exchange regulated by the Financial Conduct Authority.