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Compliance officers Transaction reporting

Direct transaction reporting system

Published on May 30, 2013

To meet regulatory requirements, the AMF provides investment services providers (ISPs) with a computerised system to allow them to report all the transactions referred to in Articles 315-46 to 315-48 of the AMF General Regulation. Called the direct transaction reporting (RDT) system, it helps to enhance the supervision of financial markets and market intermediaries.

Objectives of the RDT for the AMF

The transaction reports submitted by ISPs are used on a daily basis by the AMF. Collected through the computerised direct transaction reporting (RDT) system, the reports enable the AMF to:

  • detect market abuse through generic tests to identify statistically unusual variations (particularly in prices, trading volumes or market shares of participants) and specific tests to detect particular cases of market abuse, such as front-running;
  • monitor intermediaries and carry out thematic analyses on subjects such as best execution;
  • share information with European regulators through the Transaction Reporting Exchange Mechanism (TREM), which allows regulators in the European Economic Area (EEA) to share information about transactions involving a financial instrument over which another regulator has jurisdiction (cf. Articles 9, 10 and 14 of European Regulation EC 1287/2006), and transactions reported by branches of foreign investment firms to their host regulator (irrespective of the financial instrument traded).

The quality and completeness of the reports submitted are of vital importance to the AMF because they determine the ability of the regulator to successfully perform its task of supervising markets and monitoring intermediaries.

Entities and financial instruments concerned

Pursuant to Article 315-46 of the General Regulation and AMF Instruction DOC-2007-06, direct transaction reporting covers:

  • Direct transaction reporting extended to OTC derivativesThe AMF decided to comply with the reporting principles set forth in the paper published by CESR (since replaced by ESMA) in October 2010 under ref. CESR/10-661 “How to report transactions on OTC derivative instruments?”. Accordingly, on 1 January 2012, direct transaction reporting was extended to OTC derivatives for ISPs and branches established in France of ISPs authorised in the EEA.

    all investment services providers (ISPs), including investment management companies, and branches established in France of ISPs authorised in the EEA that conduct transactions in financial instruments admitted to trading on a regulated market of the EEA or on an organised multilateral trading facility (OMTF);
  • all investment services providers (ISPs) and branches established in France of ISPs authorised in the EEA, with the exception of investment management companies, that conduct transactions in financial instruments not admitted to trading on a regulated market of the EEA or an OMTF but whose value depends on a financial instrument admitted to trading on such a market or facility.

Requirements for a reporting exemption

There are two types of exemption that allow ISPs subject to direct transaction reporting to be excused from reporting transactions directly to the AMF (Article 315-48 II of the AMF General Regulation):

  • Regulatory exemption
    All ISPs mentioned in I of Article 315-46 of the AMF General Regulation, acting as members of a regulated market or multilateral trading facility of the EEA, are exempt from reporting their transactions on these markets or facilities if said market or facility reports the transactions conducted by these entities in their systems directly to the AMF. The markets covered by this regulatory exemption are listed in the document entitled “List of regulated markets and multilateral trading facilities reporting directly to the AMF”.
  • Exemption on request
    Some regulated markets and multilateral trading facilities have taken the initiative to connect directly to the French RDT system to be able to offer their members a transaction reporting service. In this case, the AMF does not receive all the transactions conducted on these markets, but only those by French members that have opted for the reporting service offered by the regulated markets and multilateral trading facilities listed in the document entitled “List of regulated markets and multilateral trading facilities reporting directly to the AMF”. Investment firms benefiting from this kind of exemption are responsible for periodically checking that their transactions on the said market are reported to the AMF. In practice, this type of exemption functions like a mandate (see below).

Procedures for accessing the RDT system

> Provide identity information to the AMF
Any ISP newly approved by the ACPR or AMF must identify itself to the AMF by sending a completed functional questionnaire to clarify its situation on transaction reporting requirements, including if the entity considers that it is not subject to such requirements given the nature of its activities. The entity’s compliance and internal control officer (RCCI) / investment services compliance officer (RCSI) should complete the questionnaire and email it to the AMF at rdt@amf-france.org.
It is then the responsibility of the RCCI/RCSI to ensure that information provided to the AMF is kept up to date, sending an updated questionnaire to the AMF whenever there is a material change, such as a change of BIC code, contact details or agent.

> Reporting procedures
If the exemptions mentioned above do not apply, an ISP can meet its reporting obligations in two ways (Article 315-48 of the AMF General Regulation):

  1. By connecting directly to the RDT system (secure connection);
  2. By authorising a third party to report transactions to the AMF on its behalf. This mandate must be clearly specified in the functional questionnaire sent to the AMF. The third party may be an ISP or an order matching or reporting system meeting the criteria given in AMF Instruction AMF DOC-2007-06. The reporting systems authorised by the AMF are listed in the document entitled: “List of reporting systems authorised by the AMF”. The authorising ISP retains responsibility for the completeness and quality of reports provided under a mandate.

Your AMF contact

Do you have a question about transaction reporting?
Email the RDT unit of the AMF’s Market Intermediaries Division at rdt@amf-france.org

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Legal information
Head of publications: Florence Gaubert, Executive Director of AMF Communication Directorate.
Contact: Communication Directorate – Autorité des marches financiers 17 place de la Bourse – 75082 Paris cedex 02