Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (Text with EEA relevance)

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Regulation revoked by 2023 c. 29 Sch. 1 Pt. 1

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Title IVa addition by EUR 2019/2175 Regulation (This amendment by the EU not applied to legislation.gov.uk because it is brought into force after IP completion day.)
Title VIa addition by EUR 2019/2175 Regulation (This amendment by the EU not applied to legislation.gov.uk because it is brought into force after IP completion day.)
Sch. 3 para. 31 revoked by 2023 c. 29 Sch. 2 para. 50(c)(ii)
Sch. 3 para. 32 revoked by 2023 c. 29 Sch. 2 para. 50(c)(ii)
Art. 2.1(12)(12A) substituted by 2023 c. 29 Sch. 2 para. 8
Art. 2.1(17) words omitted by 2023 c. 29 Sch. 2 para. 19(a)
Art. 2.1(18) words substituted by S.I. 2024/107 reg. 36(a)(i)
Art. 2.1(34)-(36) words substituted by S.I. 2024/107 reg. 36(a)(ii)
Art. 3(4)(5) inserted by 2023 c. 29 Sch. 2 para. 2
Art. 18-18b substituted for Art. 18 by 2023 c. 29 Sch. 2 para. 10
Art. 28a inserted by 2023 c. 29 Sch. 2 para. 17
Art. 46(2A) inserted by S.I. 2018/1403, reg. 33(1)(ba) (as inserted) by S.I. 2019/710 reg. 16(15)(a)(ii) (This amendment not applied to legislation.gov.uk. Reg. 16(15)(a) omitted (30.9.2020) by virtue of S.I. 2020/1055, regs. 1(2), 13)
Art. 46(2A) omitted by 2021 c. 22 Sch. 10 para. 5(4)
Art. 50C(2) words inserted by 2023 c. 29 Sch. 2 para. 26(2)
Art. 50C(3) words inserted by 2023 c. 29 Sch. 2 para. 26(3)
Art. 50C(4) words inserted by 2023 c. 29 Sch. 2 para. 26(4)
Art. 50D(1) words substituted by 2023 c. 29 Sch. 2 para. 27(2)(a)
Art. 50D(1) words substituted by 2023 c. 29 Sch. 2 para. 27(2)(b)
Art. 50D(2A) inserted by 2023 c. 29 Sch. 2 para. 27(4)
Art. 50D(3) words substituted by 2023 c. 29 Sch. 2 para. 27(5)
Art. 54a addition by EUR 2019/2175 Regulation (This amendment by the EU not applied to legislation.gov.uk because it is brought into force after IP completion day.)
Art. 54b addition by EUR 2019/2175 Regulation (This amendment by the EU not applied to legislation.gov.uk because it is brought into force after IP completion day.)

TITLE IVU.K.TRANSACTION REPORTING

Article 24U.K.Obligation to uphold integrity of markets

[F1 The FCA] shall monitor the activities of investment firms to ensure that they act honestly, fairly and professionally and in a manner which promotes the integrity of the market.

Textual Amendments

F1Words in Art. 24 substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(1) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 25U.K.Obligation to maintain records

1.Investment firms shall keep at the disposal of the competent authority, for five years, the relevant data relating to all orders and all transactions in financial instruments which they have carried out, whether on own account or on behalf of a client. In the case of transactions carried out on behalf of clients, the records shall contain all the information and details of the identity of the client, and the information required under [F2the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017]. F3...

2.The operator of a trading venue shall keep at the disposal of the competent authority, for at least five years, the relevant data relating to all orders in financial instruments which are advertised through their systems. The records shall contain the relevant data that constitute the characteristics of the order, including those that link an order with the executed transaction(s) that stems from that order and the details of which shall be reported in accordance with Article 26(1) and (3). F4...

3.[F5The FCA may make] technical standards to specify the details of the relevant order data required to be maintained under paragraph 2 of this Article that is not referred to in Article 26.

Those F6... technical standards shall include the identification code of the member or participant which transmitted the order, the identification code of the order, the date and time the order was transmitted, the characteristics of the order, including the type of order, the limit price if applicable, the validity period, any specific order instructions, details of any modification, cancellation, partial or full execution of the order, the agency or principal capacity.

F7...

Textual Amendments

F2Words in Art. 25(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(2)(a)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F3Words in Art. 25(1) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(2)(a)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F4Words in Art. 25(2) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(2)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F5Words in Art. 25(3) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(2)(c)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F6Words in Art. 25(3) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(2)(c)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F7Words in Art. 25(3) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(2)(c)(iii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 26U.K.Obligation to report transactions

1.Investment firms which execute transactions in financial instruments shall report complete and accurate details of such transactions to the competent authority as quickly as possible, and no later than the close of the following working day.

F8...

2.The obligation laid down in paragraph 1 shall apply to:

(a)financial instruments which are admitted to trading or traded on a [F9UK, Gibraltar or EU trading venue] or for which a request for admission to trading has been made;

(b)financial instruments where the underlying is a financial instrument traded on a [F9UK, Gibraltar or EU trading venue]; and

(c)financial instruments where the underlying is an index or a basket composed of financial instruments traded on a [F9UK, Gibraltar or EU trading venue].

The obligation shall apply to transactions in financial instruments referred to in points (a) to (c) irrespective of whether or not such transactions are carried out on the [F9UK, Gibraltar or EU trading venue].

3.The reports shall, in particular, include details of the names and numbers of the financial instruments bought or sold, the quantity, the dates and times of execution, the transaction prices, a designation to identify the clients on whose behalf the investment firm has executed that transaction, a designation to identify the persons and the computer algorithms within the investment firm responsible for the investment decision and the execution of the transaction, a designation to identify the applicable waiver under which the trade has taken place, means of identifying the investment firms concerned, and a designation to identify a short sale as defined in Article 2(1)(b) of Regulation (EU) No 236/2012 in respect of any shares and sovereign debt within the scope of Articles 12, 13 and 17 of that Regulation. For transactions not carried out on a trading venue, the reports shall include a designation identifying the types of transactions in accordance with the measures to be adopted pursuant to Article 20(3)(a) and Article 21(5)(a). For commodity derivatives, the reports shall indicate whether the transaction reduces risk in an objectively measurable way in accordance with [F10Part 3 of the Markets in Financial Instruments Regulations 2017].

4.Investment firms which transmit orders shall include in the transmission of that order all the details as specified in paragraphs 1 and 3. Instead of including the mentioned details when transmitting orders, an investment firm may choose to report the transmitted order, if it is executed, as a transaction in accordance with the requirements under paragraph 1. In that case, the transaction report by the investment firm shall state that it pertains to a transmitted order.

5.The operator of a trading venue shall report details of transactions in financial instruments traded on its platform which are executed through its systems by a firm which is not subject to this Regulation in accordance with paragraphs 1 and 3.

6.In reporting the designation to identify the clients as required under paragraphs 3 and 4, investment firms shall use a legal entity identifier established to identify clients that are legal persons.

F11...

7.The reports shall be made to the competent authority either by the investment firm itself, an ARM acting on its behalf or by the trading venue through whose system the transaction was completed, in accordance with paragraphs 1, 3 and 9.

Investment firms shall have responsibility for the completeness, accuracy and timely submission of the reports which are submitted to the competent authority.

By way of derogation from that responsibility, where an investment firm reports details of those transactions through an ARM which is acting on its behalf or a trading venue, the investment firm shall not be responsible for failures in the completeness, accuracy or timely submission of the reports which are attributable to the ARM or trading venue. In those cases and subject to [F12regulation 16(3)(d) of the Data Reporting Services Regulations] the ARM or trading venue shall be responsible for those failures.

Investment firms must nevertheless take reasonable steps to verify the completeness, accuracy and timeliness of the transaction reports which were submitted on their behalf.

[F13The FCA] shall require the trading venue, when making reports on behalf of the investment firm, to have sound security mechanisms in place designed to guarantee the security and authentication of the means of transfer of information, to minimise the risk of data corruption and unauthorised access and to prevent information leakage maintaining the confidentiality of the data at all times. [F13The FCA] shall require the trading venue to maintain adequate resources and have back-up facilities in place in order to offer and maintain its services at all times.

Trade-matching or reporting systems, including trade repositories registered or recognised in accordance with Title VI of Regulation (EU) No 648/2012, may be approved by the competent authority as an ARM in order to transmit transaction reports to the competent authority in accordance with paragraphs 1, 3 and 9.

Where transactions have been reported to a trade repository in accordance with Article 9 of Regulation (EU) No 648/2012 which is approved as an ARM and where those reports contain the details required under paragraphs 1, 3 and 9 and are transmitted to the competent authority by the trade repository within the time limit set in paragraph 1, the obligation on the investment firm laid down in paragraph 1 shall be considered to have been complied with.

Where there are errors or omissions in the transaction reports, the ARM, investment firm or trading venue reporting the transaction shall correct the information and submit a corrected report to the competent authority.

F148.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.[F15The FCA may make] technical standards to specify:

(a)data standards and formats for the information to be reported in accordance with paragraphs 1 and 3, including the methods and arrangements for reporting financial transactions and the form and content of such reports;

F16(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)the references of the financial instruments bought or sold, the quantity, the dates and times of execution, the transaction prices, the information and details of the identity of the client, a designation to identify the clients on whose behalf the investment firm has executed that transaction, a designation to identify the persons and the computer algorithms within the investment firm responsible for the investment decision and the execution of the transaction, a designation to identify the applicable waiver under which the trade has taken place, the means of identifying the investment firms concerned, the way in which the transaction was executed, data fields necessary for the processing and analysis of the transaction reports in accordance with paragraph 3; and

(d)the designation to identify short sales of shares and sovereign debt as referred to in paragraph 3;

(e)the relevant categories of financial instrument to be reported in accordance with paragraph 2;

(f)the conditions upon which legal entity identifiers are developed, attributed and maintained, by [F17the United Kingdom] in accordance with paragraph 6, and the conditions under which those legal entity identifiers are used by investment firms so as to provide, pursuant to paragraphs 3, 4 and 5, for the designation to identify the clients in the transaction reports they are required to establish pursuant to paragraph 1;

(g)the application of transaction reporting obligations to branches of investment firms;

(h)what constitutes a transaction and execution of a transaction for the purposes of this Article.

(i)when an investment firm is deemed to have transmitted an order for the purposes of paragraph 4.

F18...

10.By [F193 January 2020], [F20the FCA must publish a report] on the functioning of this Article, including its interaction with the related reporting obligations under Regulation (EU) No 648/2012, and whether the content and format of transaction reports F21... comprehensively enables monitoring of the activities of investment firms in accordance with Article 24 of this Regulation. F22...

[F2311.For the purposes of paragraph 2—

(a)‘Gibraltar trading venue’ means a Gibraltar regulated market, a Gibraltar multilateral trading facility or a Gibraltar organised trading facility;

(b)for the purposes of subparagraph (a)—

(i)‘Gibraltar regulated market’ means a regulated market which is authorised and functions regularly and in accordance with Part 3 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar (as amended from time to time);

(ii)‘Gibraltar multilateral trading facility’ means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments (in the system and in accordance with non-discretionary rules) in a way which results in a contract in accordance with Part 2 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar (as amended from time to time);

(iii)‘Gibraltar organised trading facility’ means a multilateral system—

(aa)which is not a regulated market or an MTF;

(bb)in which multiple third-party buying and selling interests in bonds, structured finance products, emission allowances or derivatives are able to interact in the system in a way that results in a contract, in accordance with Part 2 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar (as amended from time to time).]

Textual Amendments

F8Words in Art. 26(1) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

F9Words in Art. 26(2) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(b) (as amended by S.I. 2019/710, regs. 1(2), 16(13)(a)); 2020 c. 1, Sch. 5 para. 1(1)

F10Words in Art. 26(3) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(c); 2020 c. 1, Sch. 5 para. 1(1)

F11Words in Art. 26(6) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(d); 2020 c. 1, Sch. 5 para. 1(1)

F12Words in Art. 26(7) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(e)(i); 2020 c. 1, Sch. 5 para. 1(1)

F13Words in Art. 26(7) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(e)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F14Art. 26(8) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(f); 2020 c. 1, Sch. 5 para. 1(1)

F15Words in Art. 26(9) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(g)(i)(aa); 2020 c. 1, Sch. 5 para. 1(1)

F16Art. 26(9)(b) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(g)(i)(bb); 2020 c. 1, Sch. 5 para. 1(1)

F17Words in Art. 26(9)(f) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(g)(i)(cc) (as inserted by S.I. 2019/710, regs. 1(2), 16(13)(b)); 2020 c. 1, Sch. 5 para. 1(1))

F18Words in Art. 26(9) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(g)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F19Substituted by Regulation (EU) 2016/1033 of the European Parliament and of the Council of 23 June 2016 amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories (Text with EEA relevance).

F20Words in Art. 26(10) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(h)(i)(aa); 2020 c. 1, Sch. 5 para. 1(1)

F21Words in Art. 26(10) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(h)(i)(bb); 2020 c. 1, Sch. 5 para. 1(1)

F22Words in Art. 26(10) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(h)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F23Art. 26(11) inserted by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(3)(i) (as inserted by S.I. 2019/710, regs. 1(2), 16(13)(c); 2020 c. 1, Sch. 5 para. 1(1))

Article 27U.K.Obligation to supply financial instrument reference data

1.With regard to financial instruments admitted to trading on regulated markets or traded on MTFs or OTFs, trading venues shall provide [F24the FCA] with identifying reference data for the purposes of transaction reporting under Article 26.

With regard to other financial instruments covered by Article [F2526(2)(b) or (c)] traded on its system, each systematic internaliser shall provide [F26the FCA] with reference data relating to those financial instruments.

Identifying reference data shall be made ready for submission to the [F27FCA] in an electronic and standardised format before trading commences in the financial instrument that it refers to. The financial instrument reference data shall be updated whenever there are changes to the data with respect to a financial instrument. [F28 This data is to be transmitted without delay to the FCA, which must publish it as soon as practicable on its website. ] F29...

2.In order to allow [F30the FCA] to monitor, pursuant to Article 26, the activities of investment firms to ensure that they act honestly, fairly and professionally and in a manner which promotes the integrity of the market, [F31the FCA] shall establish the necessary arrangements in order to ensure that:

(a)[F32the FCA] effectively receive the financial instrument reference data pursuant to paragraph 1;

(b)the quality of the data so received is appropriate for the purpose of transaction reporting under Article 26;

F33(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.[F34The FCA may make] technical standards to specify:

(a)data standards and formats for the financial instrument reference data in accordance with paragraph 1, including the methods and arrangements for supplying the data and any update thereto to [F35the FCA] in accordance with paragraph 1, and the form and content of such data;

(b)the technical measures that are necessary in relation to the arrangements to be made by [F36the FCA] pursuant to paragraph 2.

F37...

Textual Amendments

F24Words in Art. 27(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(a)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F25Words in Art. 27(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(a)(ii)(aa) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F26Words in Art. 27(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(a)(ii)(bb) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F27Word in Art. 27(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(a)(iii)(aa) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F28Words in Art. 27(1) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(a)(iii)(bb) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F29Words in Art. 27(1) omitted (31.12.2020) by virtue of The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(a)(iv) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F30Words in Art. 27(2) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(b)(i)(aa) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F31Words in Art. 27(2) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(b)(i)(bb) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F32Words in Art. 27(2)(a) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 29(4)(b)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)