EU · MiFIR · TITLE IV TRANSACTION REPORTING
Article 26 MiFIRObligation to report transactions
Transaction reporting: investment firms that execute transactions in financial instruments must report complete and accurate details to their competent authority by the close of the following working day. The duty covers instruments admitted to trading or traded on a trading venue and instruments whose underlying is so traded; an OTC derivative is reported only when executed on a trading venue, unless it falls within Article 8a(2), in which case it is reported either way. Reports identify the instrument, the client, the decision makers and any algorithm, and may be made through an ARM or the trading venue; venues also report for members not subject to MiFIR.
Amendments and application dates
| Amending act | Change | Applies from |
|---|---|---|
| Regulation (EU) 2024/791 | Text amended; Text deleted; Text inserted | 28 Mar 2024 |
Level 2: delegated and implementing acts
- RTSIn forceLegal basis
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.
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredInferred · 90%
AI summaryAccumulators are reported as forwards or options, depending on any option features; the individual settlement trades are not reported but hedging trades with third parties are, and ESMA sets out how each RTS 22 field should be completed for the accumulator itself.
- Q&AAnsweredESMA rulebook
AI summaryESMA provides a table of the national client identifiers for natural persons to use in transaction reports, by country and in the priority order of Annex II of RTS 22, with CONCAT generated as set out in Article 6 of RTS 22.
- Q&AAnsweredExplicit reference · 90%
AI summaryA 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.
- Q&AAnsweredInferred · 85%
AI summaryStateless natural persons should be identified in transaction reports with the country code 'ZZ' followed by a CONCAT code built under Article 6(4) of RTS 22.
- Q&AAnsweredInferred · 70%
AI summaryIn a Commission answer, transfers of financial instruments between branches of the same legal entity, or between a branch and its head office, are not subject to transparency or transaction reporting because ownership does not change.
- Q&AAnsweredExplicit reference · 90%
AI summaryRisk-free rates missing from the RTS 23 and RTS 22 code lists should be reported with their ISO 20022 four-letter code (for example 'ESTR' for €STR) and, where one exists, the rate's ISIN; ESMA also covers other unlisted reference rates, whether voluntary switches to risk-free rates are reportable transactions, and new ISINs for instruments with fallback rates.
- Q&AAnsweredExplicit reference · 90%
AI summaryA firm using another investment firm's execution algorithm reports as if it had sent the order to that firm, entering in field 59 of RTS 22 only its own person or algorithm responsible; this is the same if the algorithm provider is not a MiFID firm, and an algorithm provider that uses the first firm's membership is itself executing and must report.
- Q&AAnsweredExplicit reference · 90%
AI summaryESMA sets out, with a worked example, how an FX forward traded on a venue is transaction-reported under Article 26 MiFIR (price as the forward rate, quantity and currency in the base currency, buyer determined by ISO 4217 alphabetical order) and reported as reference data to FIRDS under Article 27.
- Q&AAnsweredInferred · 90%
AI summaryA complex trade under Article 12 of RTS 22 is a single transaction in several instruments at one price, even if the components also trade separately; ESMA explains how to report each leg (including TVTIC), mixed reportable and non-reportable components, and the reference data for strategies and their components.
- Q&AAnsweredExplicit reference · 90%
AI summaryAn FX swap executed or admitted to trading on a venue is transaction-reported and reference-data-reported as an FX swap (and an FX forward as a forward), on or off venue, with worked examples of the fields including price in swap points.
- Q&AAnsweredExplicit reference · 90%
AI summaryESMA gives worked examples of transaction reports and reference data for interest rate swaps: in a fixed-to-floating swap the buyer is the payer of the fixed rate, reported as the price; in a float-to-float basis swap the buyer is the payer of the spread (reported as the price, even if negative), with rules for ordering the legs.
- Q&AAnsweredExplicit reference · 90%
AI summaryFor transaction reporting scope under Article 26(2)(b)-(c) MiFIR the relevant underlying is the immediate one, not the ultimate one; fund units and ETFs are not looked through, while depositary receipts, convertible and reverse convertible bonds and warrants are reportable where their underlying is traded on a venue, with that underlying reported in field 47.
- Q&AAnsweredExplicit reference · 90%
AI summaryTransactions executed through non-EU branches of EU investment firms must be reported under Article 26 MiFIR, since a branch is part of the firm; reports go to the home Member State authority and identify the branch by its head office's LEI.
- Q&AAnsweredInferred · 90%
AI summaryESMA works through transaction reporting where a bank has outsourced discretionary portfolio management to another investment firm that does not meet the transmission conditions, showing how the executing broker, the bank and the portfolio manager each report the buyer, seller, decision maker (field 12), investment decision (field 57) and execution within the firm (field 59, 'NORE').
- Q&AAnsweredInferred · 90%
AI summaryIn a syndicated primary issuance every execution leg is reportable: the coordinating bank buying from the issuer, any sale to billing and delivering banks, and the sale to the client; ESMA explains how to complete trading date time and execution-within-firm, with a worked equity IPO example.
- Q&AAnsweredInferred · 90%
AI summaryCorporate events must be reported where the investor could make an investment decision and no RTS 22 Article 2(5) exclusion applies, including default options and standing instructions, but not lapsed rights; ESMA explains how to report the resulting transactions (counterparties, price, NOAP or PNDG, date and time) and when field 59 is 'NORE'.
- Q&AAnsweredInferred · 90%
AI summaryWhere one leg of an OTC swap contains a reportable financial instrument, the transaction report must also identify the other leg, even if it references an index such as LIBOR or EURIBOR, so that authorities see both legs.
- Q&AAnsweredInferred · 80%
AI summaryWhere a swap's fixed rate or an option's strike price is an attribute of the transaction rather than the instrument, the transaction report carries it as the price (with the option premium as the up-front payment) and the reference data leaves the field empty, for the CFI codes ESMA specifies.
- Q&AAnsweredExplicit reference · 90%
AI summaryAn investment firm whose portfolio is managed on a discretionary mandate by another firm still has its own transaction reporting obligation under Article 26 MiFIR, because it is dealing on own account, including where a non-MiFID fund manager sits in between.
- Q&AAnsweredExplicit reference · 90%
AI summaryWhen characteristics in fields 50 to 56 of an OTC derivative change, it is treated as a new contract: one transaction report closes out the original (buyer and seller swapped) and another opens the new one.
- Q&AAnsweredInferred · 90%
AI summaryThe quantity in a transaction report is the amount acquired or disposed of at the time of the reportable transaction only, not the remaining position; for example a later notional decrease is reported net of earlier exempt amortisation payments.
- Q&AAnsweredExplicit reference · 90%
AI summaryThe buyer and seller in a transaction report can be the same: where firm A asks firm B to buy and sell simultaneously for its clients without meeting the transmission conditions of Article 4 RTS 22, and firm B executes off venue, firm B reports firm A's LEI as both buyer and seller.
- Q&AAnsweredInferred · 90%
AI summaryThe quantity in a transaction report is the amount acquired or disposed of at the time of the reportable transaction only, not the remaining position; for example a later notional decrease is reported net of earlier exempt amortisation payments.
- Q&AAnsweredInferred · 85%
AI summaryESMA gives a worked RTS 22 example for an inflation-indexed bond, reporting the quantity as nominal value, the price as a percentage and the net amount as clean price plus accrued interest, multiplied by the index ratio.
- Q&AAnsweredExplicit reference · 90%
AI summaryWhere a transaction's price is not known at execution (for example an ETF dealt at NAV), firms should publish and report it with 'PNDG' as the price, then cancel and replace the reports with the actual price once known, keeping the original execution date and time.
- GuidelinesPublishedESMA rulebook
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.
- OpinionPublishedESMA rulebook
AI summaryESMA opinion (ESMA70-156-117) on when an OTC derivative counts as 'traded on a trading venue' (TOTV) for MiFIR transparency, transaction reporting and reference data: only where it shares the same reference data details as a derivative traded on a venue, as identified by its ISIN; ESMA will monitor how the concept is applied.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document on MiFID II and MiFIR transparency (final version 27 October 2023, printed with the reference ESMA70-1562901-35), covering equity and non-equity transparency, pre-trade waivers, the double volume cap, the systematic internaliser regime, data reporting services providers and third-country issues. It is no longer updated; later Q&As are in ESMA's Q&A tool.
- Q&ALegacy Q&A documentESMA rulebook
AI summaryESMA's consolidated legacy Q&A document (ESMA70-1861941480-56, last updated 31 March 2023) on MiFIR data reporting, chiefly financial instrument reference data and transaction reporting: issuer LEIs, admission dates, instrument and underlying codes, maturity dates, CFI and FISN codes, bond fields and business cases. It is no longer updated; later Q&As are in ESMA's Q&A tool.
Commentary
No law-firm commentary is linked to this provision yet.
219 more documents relate to MiFIR as a whole without naming an article.
UK counterpart
- Article 26 UK MiFIR · Obligation to report transactions
Revocation enacted by Financial Services and Markets Act 2023; no commencement date yet.
DivergedExplicit referenceEU changes after exit: Regulation (EU) 2024/791 (from 28 Mar 2024). UK changes after onshoring: S.I. 2024/107 (from 5 Apr 2024), Financial Services and Markets Act 2023 (from 6 Jul 2026). UK revocation enacted (Financial Services and Markets Act 2023), not yet commenced.
- Explicit reference
The Handbook source note on this provision cites the article.
FCA Handbook references © FCA, used under the Open Government Licence v3.0. Rulestack is independent and not endorsed by the FCA.
Version history
- From 28 Mar 2024
- From 1 Jan 2022 to 28 Mar 2024
- From 1 Jul 2016 to 1 Jan 2022
- From 2 Jul 2014 to 1 Jul 2016
Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.