MiFID II FAQs
Version 1.5 22nd November 2017
This guide is for clients who trade with an EU/EEA-based PVM, Tullett Prebon (“TP”) or ICAP entity. The information contained herein is designed to help you trade with us in a MiFID II-compliant manner from 3 January 2018.
The guide has been created to answer some of the frequently-asked MiFID II questions and will continue to be developed over time in response to additional questions that are raised.
The questions are grouped in the following categories as listed below:
- TP ICAP Venue Design;
- Data Requirements;
- Pre-Trade Transparency;
- Post-Trade Transparency;
- Technology Changes;
- Non- EEA Venues;
- Further Material.
We hope this guide will satisfy your queries; however, if you are unable to find the answer to a specific query, please contact us at PVMOTFOperator@tpicap.com. For onboarding-related queries, please contact us at TPICAPMiFIDIIOnboarding@tpicap.com.
Between them, PVM, Tullett Prebon and ICAP will separately operate several Multilateral Trading Facilities (MTFs) and Organised Trading Facilities (OTFs). Clients will be able to interact with brokers and trading platforms in a similar manner to today. The trading venues will support all MiFID II asset classes currently traded and new products.
Depending on the asset class, brokers of TP ICAP group companies in the EU/EEA will operate inside an OTF and/or be able to access other trading venues to register trades and place orders on behalf of clients.
Provided that your firm is onboarded as a venue user/participant for the relevant trading venue, then (subject to the rules of the trading venue) you can place interests and orders on behalf of clients. However, the person submitting the interest is responsible for interaction with the trading venue and any resulting transaction. The booking, reporting and individual data requirements will vary per asset class.
When doing business with PVM, Tullett Prebon or ICAP in a multilateral environment, the arranging activity is expected to be either on a trading venue or under its rules. The scope of the OTC markets is being restricted by the MiFID II rules. However, certain transactions (such as spot FX or commodities transactions) will continue to be arranged in the OTC markets.
The onboarding process ensures that PVM receives all required information from our clients to ensure compliance with the new regulations. It also ensure that clients have reviewed and agreed to comply with all appropriate trading venue rulebooks, terms of business and policies.
Please contact us at TPICAPMiFIDIIOnboarding@tpicap.com.
Yes, there is one process to apply for all venues with one authorised signature per entity.
In order to trade with PVM, Tullett Prebon and ICAP, we will require certain data about your firm and its personnel. TP ICAP group companies have issued a MiFID II Data Directory.
This will cover:
- The data we require for processing and reporting trades and orders under MiFID II; and
- Information which TP ICAP group companies will supply you with to support your reporting and record-keeping obligations.
Please contact PVMOTFOperator@tpicap.com for a copy of the document.
Below are a selection of data related FAQ. Please refer to the TP ICAP MiFID II Data Directory for further information.
An LEI is a twenty-character code that is unique to a legal entity. It is based on the ISO 17442 standard and is used by regulators globally. Clients must provide an LEI for each of their legal entities that intends to trade in the EU/EEA.
If you do not have one, you can request your LEI by contacting your preferred business partner from a list of LEI issuing organisations. Information about how to obtain an LEI can be found at the Global Legal Entity Identifier Foundation website, click here.
The Global Legal Entity Identifier Foundation website includes a database that can be searched to obtain LEIs of firms that have already registered with an LEI-issuing organisation. While we will periodically search that database, to ensure accuracy you will also need to provide this information on the Data Gathering Sheet we have uploaded to the BBEE portal.
According to current regulatory guidance, failure to provide an LEI will prevent you from being able to trade. The collection of underlying personal data is a reporting and record keeping requirement for all venues. Workflow and governance procedures are to be finalised for personal data, but we require all users to supply this.
We will be asking you to provide short codes for the Investment Decision Maker (IDM) and the Execution Decision Maker (EDM) who are interacting with PVM in advance of MiFID II go-live. We will also be working with an external partner to store the personally identifiable information (PII) Data, which will be held in a secure repository for record-keeping and transaction reporting purposes.
The short code is defined by you. We are expecting a unique code for each of the Execution Decision Makers (EDM) and/or Investment Decision Makers (IDM) who interact with us. Our recommendation is that the short code is somewhere between 8 and 25 characters to ensure individuality. It should not be an email address.
Short codes can be created by you from any sensible source. As an example, some firms use their internal HR systems ID.
Trading venues operated by TP ICAP group companies will fulfil their pre-trade transparency obligations through the publication of all eligible orders.
Pre-trade waivers will be applied where appropriate. We expect our venues to be authorised to fully utilise all available waivers.
Publication of pre-trade data is being undertaken on behalf of the trading venues by Tullett Prebon Information, part of TP ICAP groups Data and Analytic’s division.
Publication of pre-trade data is being undertaken on behalf of the trading venues operated by TP ICAP group by Tullett Prebon Information, part of TP ICAP groups Data and Analytic’s division. The data will be accessible via existing methods of delivery through a machine-readable feed, via data vendors or via a dedicated website where access will be entitled using a username and password.
There will be a price list for the transparency services which will be available on request.
Data will be provided under licence. The terms and conditions of the licence are available on application.
PVM trading venues will report transactions to regulators where required, but an additional transaction reporting service is not being offered. Venues have a responsibility to report transactions executed on their venues where the participant is a non–MiFID II firm under RTS 22 and is not otherwise required to transaction report under local rules.
As part of the MiFID II onboarding process, each trading venue user/participant will be required to confirm whether their firm is classified as a MiFID II Investment Firm. This will then be verified by the onboarding team.
At the end of the trading day, each trading venue will make available to its venue users/participants a recap file of all firm orders submitted by them to that venue. This will not include information for Indications of Interest (IOIs). Please see the Venue Rule books for details on the distinction between orders and IOIs.
The file will include Trading Date Time, ISIN (International Securities Identification numbers), Waiver Indicators, Transaction Reference Number, Trading Venue Identification Code, Venue, Complex Trade Component ID and Venue Product Code.
All of the trading venues operated by TP ICAP group companies will make trade information available via Tullett Prebon Information, part of TP ICAP groups Data and Analytic’s division.
We are still planning the functionality for EOD files, but it is likely that they can be sent as an attachment to a scheduled email if required.
TP ICAP group companies are creating a consolidated reporting facility built around a single repository for gathering, storing and archiving time-stamped MiFID II-required data to support all the reporting requirements.
Whilst there are significant changes being made to the middle and back-office technology suites, there are only a limited number of changes being made to client-facing screens and APIs.
Changes to the proprietary feeds will be communicated to customers via our Client Services team as normal. Testing will also be coordinated by that team.
Trader UI – Encourage Testing: Trading screens include new MIFID II fields and API enhancements to send orders and affirm trades
STP Feeds – Recommend Testing: STP messages will include new MiFID II-specific data fields to report trading venue, waiver codes, trading capacity and transaction ID for packages.
End of Day Recaps – Recommend Testing: EOD Order and Trade Recap files will include new MiFID II-specific data fields, including trader ID, venue MIC and UTC standard date and time.
You should have already been contacted by our client services team. If not, please contact email@example.com.
If you wish to access the OTF as a venue user, you will need to be onboarded as a client of the firm operating the OTF. If your trading interests are only submitted to the OTF via a broker who is a venue user, then you will not need to onboard as a venue user of the OTF.
In any event, the rules of the OTF will apply to any trade request that is submitted or transaction that is executed on or through the OTF, and you should familiarise yourself with the OTF rule book.