SUP 17

Transaction reporting

SUP 17.1

Application

Who?

SUP 17.1.1

See Notes

handbook-rule
(1) This chapter applies to every firm which is:
(c) an investment firm (including a credit institution which is an investment firm) not within (a) or (b) excluding a firm to whom the ISD does not apply under Article 2(2) of the ISD.
(2) This chapter does not apply to:
(a) an incoming EEA firm in relation to its passported activities; or

What?

SUP 17.1.2

See Notes

handbook-rule
This chapter applies to a firm in SUP 17.1.1 that enters into reportable transactions (whether on its own account or on behalf of others).

Where?

SUP 17.1.3

See Notes

handbook-rule
This chapter applies with respect to:
(1) activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom; or
(2) passported activities of an ISD investment firm (including a credit institution which is an ISD investment firm) carried on from a branch in another EEA State.

SUP 17.1.4

See Notes

handbook-guidance
ECO 1.1.6 R has the effect that this chapter does not apply to an incoming ECA provider acting as such.

SUP 17.2

Purpose

SUP 17.2.1

See Notes

handbook-guidance
This chapter sets out the requirements for firms to report transactions to the FSA. One purpose of the chapter is to implement article 20 of the Investment Services Directive which has the two aims of protecting investors and ensuring the smooth operation and transparency of the markets in transferable securities. Transaction reports also form a useful part of the FSA's arrangements for monitoring (under paragraph 6(1) of Schedule 1 to the Act) and can assist the FSA in assessing the type and conduct of business carried out by a firm.

SUP 17.3

Introduction

SUP 17.3.1

See Notes

handbook-guidance
The requirements set out in this chapter represent an interim approach to transaction reporting, based on the reporting requirements which previous regulators applied to firms. A number of provisions reflect the interim nature of the requirements - notably the guidance in SUP 17.4.4. Also there are still significant differences in the requirements applicable to different categories of firm. To help firms the FSA intends to publish additional guidance from time to time covering developments and issues in transaction reporting (including sources of relevant information).

SUP 17.3.2

See Notes

handbook-guidance
The reporting obligations vary according to the nature of a firm's business and the number of transactions which a firm ordinarily enters into. Firms are generally expected to report transactions through the electronic systems listed in the chapter, but firms which enter into relatively few transactions may report those transactions manually, by fax or e-mail (see SUP 17.7).

SUP 17.4

Obligation to make transaction reports

SUP 17.4.1

See Notes

handbook-rule
When a firm (whether on its own account or on behalf of another) enters into a reportable transaction (as defined in SUP 17.5), it must make a transaction report (as set out in SUP 17.6) to the FSA.

Exceptions: general

SUP 17.4.2

See Notes

handbook-rule
A firm need not make a transaction report to the FSA if:
(1) the firm complies with a requirement on it to report the reportable transaction to its Home State regulator; or
(2) the reportable transaction is transacted on one of the exchanges listed in SUP 17 Annex 1 and the firm reports the reportable transaction to that exchange.

Exceptions: investment management firms and personal investment firms

SUP 17.4.3

See Notes

handbook-rule
An investment management firm or a personal investment firm need not make a transaction report to the FSA if:
(1) the reportable transaction is transacted on a regulated market and the firm:
(a) reports the reportable transaction to that regulated market; or
(b) satisfies itself that it will be so reported; or
(2) the firm is the seller, or is acting on behalf of the seller, and the counterparty for that transaction is another firm; or
(3) the firm has reasonable grounds to believe that:
(a) another firm is obliged to make a transaction report to the FSA for that transaction; and
(b) that other firm is not entitled to rely on this exception.

SUP 17.4.4

See Notes

handbook-guidance
For the purposes of SUP 17.4.3 (3) 'reasonable grounds' would include a firm relying on a broker if:
(1) the firm used the same broker for transactions before commencement;
(2) that broker was previously regulated by SFA and was subject to its transaction reporting requirements; and
(3) the firm is not aware of any material changes to the broker's permission.

SUP 17.4.5

See Notes

handbook-guidance
The guidance in SUP 17.4.4 is likely to become less relevant over time.

SUP 17.4.6

See Notes

handbook-guidance
'Reasonable grounds' require more than just a check as to whether the other firm is authorised. For example a firm should not rely on SUP 17.4.3 (3) alone if the only other party to a reportable transaction is an investment management firm or a personal investment firm.

Use of reporting agents

SUP 17.4.7

See Notes

handbook-rule
A firm may appoint another person to make transaction reports on its behalf if:
(1) the firm has informed the FSA of that appointment in writing; and
(2) the transaction reports made on its behalf comply with SUP 17 and distinguish each individual transaction, using the firm's identifying code.

SUP 17.4.8

See Notes

handbook-guidance
SUP 17.4.7 sets out the conditions which must be satisfied if a firm wishes to appoint someone else to make transaction reports on its behalf. The firm will remain responsible for its compliance with SUP 17.

Other reporting requirements

SUP 17.4.9

See Notes

handbook-guidance
A firm's obligations under this chapter do not affect any obligation to report transactions under the rules of any reporting system or of any exchange, whether or not that exchange is a regulated market.

SUP 17.5

Reportable transactions

SUP 17.5.1

See Notes

handbook-rule
A 'reportable transaction' is a transaction of a type identified in SUP 17.5.4, except:
(1) stock or bond lending and borrowing, repurchase or reverse repurchase agreements;
(2) asset trading transactions, including novation, assignment and sub-participation; and
(3) issues, market allotments and syndications which are not dealt in on a regulated market.

SUP 17.5.2

See Notes

handbook-guidance

SUP 17.5.3

See Notes

handbook-guidance
In general, transactions, other than those in derivative products, between the issuer of an instrument and the first taker as principal are not reportable transactions. However, if an instrument is already dealt in on a regulated market, all secondary issue transactions are reportable if the new issue ranks equally with those already in issue and the issue is already traded or listed on a regulated market. All secondary market transactions carried out on or off exchange, before or after the instrument is issued, are reportable. In addition, for a firm which is not a personal investment firm or an investment management firm (essentially BCD credit institutions and securities and futures firms), reportable transactions include transactions in some instruments which are not traded on a regulated market at all - for example the instrument concerned might only be traded over the counter or through a trading facility such as Ofex.

SUP 17.5.4

See Notes

handbook-rule

Reportable transactions (see SUP 17.5.1)

SUP 17.6

Transaction reports

Timing of reports

SUP 17.6.1

See Notes

handbook-rule
A transaction report must be made as soon as practicable and in any event, subject to SUP 17.7.10 (Failure of reporting systems), before the end of the next business day after the day on which the firm entered into the transaction.

Content

SUP 17.6.2

See Notes

handbook-rule
A transaction report must:
(1) in the case of an investment management firm, include the details set out in SUP 17.6.4, except that it need not provide the details in the column headed 'Counterparty' if the counterparty is not an ISD investment firm; or
(2) in the case of a personal investment firm, include the details set out in SUP 17.6.4; or
(3) in the case of any other firm, include all the fields identified in SUP 17 Annex 2 for the relevant reporting system.

SUP 17.6.3

See Notes

handbook-guidance
SUP 15.6 applies to transaction reports and requires a firm to take reasonable steps to ensure that information provided to the FSA is accurate.

SUP 17.6.4

See Notes

handbook-rule

Details to be reported (investment management firms and personal investment firms) (see SUP 17.6.2)

SUP 17.6.5

See Notes

handbook-evidential-provisions
(1) A firm subject to SUP 17.6.2 (3) should ensure that a transaction report is accepted by the relevant reporting system.
(2) Contravention of (1) may be relied on as tending to establish contravention of SUP 17.4.1.

SUP 17.6.6

See Notes

handbook-rule
The price reported in a transaction report must be the transaction price, excluding any charges or commission which is shown separately on the contract note or on any similar notification.

Basket trades

SUP 17.6.7

See Notes

handbook-rule
If a firm (other than an investment management firm or a personal investment firm) effects a series of transactions within a 24 hour period which is an exact replica of any of the following indices (known as a 'basket trade'), it may report them as a single transaction under a single approved security code:
(1) CAC 40; or
(2) DAX 30; or
(3) LSE/Nikkei 50; or
(4) Nikkei 225; or
(5) Standard and Poors 500; or
(6) TOPIX.

SUP 17.6.8

See Notes

handbook-guidance
The 'single approved security code' referred to in SUP 17.6.7 and SUP 17.6.9 is the code issued by the relevant exchange or numbering agency.

SUP 17.6.9

See Notes

handbook-rule
If a firm (other than an investment management firm or a personal investment firm) effects a series of transactions within a 24 hour period which does not exactly replicate one of the indices listed in SUP 17.6.7, it may make a transaction report for them showing:
(1) a single basket trade transaction under a single approved security code; and
(2) the missing constituents of the relevant index, as reverse trades, with the price and quantity set according to their weighting in the index.

SUP 17.6.10

See Notes

handbook-guidance
A firm which effects a series of transactions to which SUP 17.6.9 applies may report them as individual transactions, rather than under that rule.

SUP 17.7

Method of making transaction reports

Use of reporting systems

SUP 17.7.1

See Notes

handbook-rule
A transaction report must be made through one of the reporting systems listed in SUP 17.7.8 unless SUP 17.7.4 applies.

SUP 17.7.2

See Notes

handbook-rule
Before a firm uses any of the systems listed in SUP 17.7.8, it must notify the FSA in writing that it intends to do so.

SUP 17.7.3

See Notes

handbook-rule
A firm must send a notification under SUP 17.7.2 to a member of its supervision team and to the FSA's Transaction Monitoring Unit.

Reporting by fax or e-mail

SUP 17.7.4

See Notes

handbook-rule
Firms within the categories in the table in SUP 17.7.5 may report transactions by a fax or e-mail transmission which complies with the relevant requirements in the table.

SUP 17.7.5

See Notes

handbook-rule

Reporting by fax or e-mail (see SUP 17.7.4)

SUP 17.7.6

See Notes

handbook-guidance
The manual reporting form in SUP 17 Annex 3 is not compulsory for investment management firms or personal investment firms, but those firms may use it to record the required information.

SUP 17.7.7

See Notes

handbook-rule
Transaction reports made under SUP 17.7.4 must be sent to the FSA's Data Integrity Unit:
(1) by fax on 020 7066 3675; or
(2) by e-mail to tmu@fsa.gov.uk.

Permitted reporting systems

SUP 17.7.8

See Notes

handbook-rule
The reporting systems referred to in SUP 17.7.1 R are:
(1) CEDCOM system operated by Clearstream Banking AG, Frankfurt;
(2) CGO Central Gilts Office;
(3) CRESTCo Limited;
(4) EUCLID operated by Euroclear SA (input directly into EUCLID or through SWIFT);
(5) the FSA's Direct Reporting System;
(6) SEQUAL 2000 system of Thomson Financial Services;
(7) Tradepoint Financial Networks Plc;
(8) Trade Registration System of The London International Financial Futures and Options Exchange (LIFFE);
(9) TRAX system of the International Securities Market Association; and
(10) Jiway Limited.

SUP 17.7.9

See Notes

handbook-guidance
Guidance on the use of particular reporting systems listed in SUP 17.7.8 is available from the FSA's Transaction Monitoring Unit.

Failure of reporting systems

SUP 17.7.10

See Notes

handbook-rule
If a reporting system fails (whether a relevant reporting system, the firm's own system or the system of a person reporting on its behalf), a firm must:
(1) make the transaction report through another reporting system, if the firm considers it reasonably practicable to do so; or
(2) make the transaction report by the end of the business day after the day when the failure is remedied, if the firm does not consider it reasonably practicable to comply with (1).

SUP 17.7.11

See Notes

handbook-rule
A firm must notify the FSA in writing, before the end of the business day after the day when the failure occurs, which of SUP 17.7.10 (1) or SUP 17.7.10 (2) it will adopt.

SUP 17.7.12

See Notes

handbook-rule
A firm must notify the FSA, in writing and without delay, of any failure of its own system, or that of a person reporting on its behalf, which prevents a transaction report being made within the period specified in SUP 17.6.1.

SUP 17 Annex 1

Exchanges relevant for SUP 17.4.2R (2)

See Notes

handbook-rule

SUP 17 Annex 2

Mandatory fields for reporting systems

See Notes

handbook-rule

SUP 17 Annex 3

Manual transaction reporting form

See Notes

handbook-rule

SUP 17 Annex 4

Market identifier codes (Listed alphabetically by exchange)

See Notes

handbook-guidance

SUP 17 Annex 5

Regulated markets

See Notes

handbook-guidance