ESMA_QA_2204
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/2204
Regulatory Context
Regulation : MIFIR
Level 1 Regulation: Markets in Financial Instruments Regulation (MiFIR) Regulation (EU) No 600/2014- MDP
Level 2 Regulation: RTS 22 - Regulation 2017/590 on the reporting of transactions to competent authorities
Level 3 Regulation: No information available
Topic: * Transaction reporting
Subject Matter: Reporting of accumulator contracts
Question
Submission Date: 27 May 2024
(a) How should accumulators - i.e. derivative contracts whereby the buyer commits to buy a predefined number of underlying financial instruments at a predefined price, per day, over a certain “accumulation” period - be classified?
(b) Should the IF report the single transactions executed when settling the accumulator contract?
(c) Should the IF report the transactions concluded with third parties to secure the financial instruments to be sold to the accumulator’s buyer?
(d) How should the accumulator contract be reported?
ESMA Answer
Answer Date: 24-05-2024
(a) For the purposes of transaction data reporting, accumulators should be classified as either forwards or options, depending as to whether they embed option features (e.g. knock-out price or gearing ratio). (b) No. (c) Yes, they should be reported according to the general rules, as applicable. (d) Accumulators should be reported as displayed below:
RTS 22 Field Number
RTS 22 Field Name
Content to be reported
30
Quantity
Number of derivative contracts purchased.
33
Price
Price at which the buyer has committed to purchase the underlying financial instruments during the accumulation period.
[For contracts classified as options]
The premium of the derivative contract per underlying.
38
Up-front payment
If applicable, the monetary value of any up-front payment.
42
Instrument full name
Full name of the financial instrument, which must contain the term “accumulator”.
43
Classification
JE**** or O*****
46
Price multiplier
Maximum number of shares to be purchased over the entire accumulation period.
47
Underlying ISIN
ISIN of the underlying.
51
Strike price
[Only for contracts classified as options]
Pre-determined price at which the holder will have to buy the underlying financial instrument.
55
Expiry date
Expiration date of the accumulator.
This document was automatically extracted from the ESMA EMIR Q&A database.