Q&A · ESMA
Concept of underlying - reverse convertible bonds and reverse convertible notes
A transaction in a convertible bond, reverse convertible bond or reverse convertible note is reportable under Article 26(2)(b) MiFIR where the instrument it converts into is traded on a trading venue, with that instrument reported as the underlying in field 47 of RTS 22; if the bond is itself in scope under Article 26(2)(a), only its own ISIN is reported.
Details
| Reference | ESMA_QA_603 |
|---|---|
| Issuer | ESMA |
| Published | 31 Mar 2023 |
| Answered | 31 Mar 2023 |
| Submitted | 6 Oct 2022 |
| ESMA topics | Transaction reporting |
Provisions it relates to
- Article 26 MiFIR · Obligation to report transactionsExplicit reference · 90%
- MiFIR (whole act)Explicit reference
Documents it refers to
- GuidelinesPublishedExplicit reference
AI summaryESMA's guidelines (ESMA/2016/1452, corrected 2017) on transaction reporting under Article 26 MiFIR, order record keeping under Article 25 and clock synchronisation, with detailed worked examples on trading capacities, chains and transmission of orders, identification of clients and decision makers, and how to populate each reporting field.
- RTSIn forceExplicit reference
AI summaryRTS 22 on transaction reporting under Article 26 MiFIR: defines a reportable transaction and its execution, the conditions for transmitting orders instead of reporting, identification of firms, clients, decision makers and the persons or algorithms responsible for investment and execution decisions, flags for waivers and short sales, branch reporting and the most relevant market in terms of liquidity, with the reporting fields in its annex.