MiFID II Transaction Reporting

Introduction

The three main reasons for requiring that details of transactions in financial instruments be reported to competent authorities are that transaction reporting enables the competent authorities:

• to detect and investigate potential cases of market abuse
• to monitor the fair and orderly functioning of markets, and
• to monitor the activities of investment firms.

These may not give much comfort to those subject to the onerous reporting obligation, but they do give context to the regime described in this paper and to the requirement to not only identify the person responsible for execution of the transaction but also the person who made the investment decision.