ESMA_QA_603
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/603
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: Guidelines on transaction reporting, order record keeping and clock synchronisation under MiFID II
Topic: * Transaction reporting
Subject Matter: Concept of underlying - reverse convertible bonds and reverse convertible notes
Question
Submission Date: 06 October 2022
Does the concept of an underlying for the purposes of Article 26(2)(b) of MiFIR extend to convertible bonds, reverse convertible bonds and reverse convertible notes?
ESMA Answer
Answer Date: 31-03-2023
Where a transaction takes place in a convertible bond, reverse convertible bond or reverse convertible note (the main instrument) and the instrument into which the bond can be converted is traded on a trading venue the transaction is reportable under Article 26(2)(b) of MiFIR. Where a transaction report is made on the basis of the instrument being in scope of Article 26(2)(b) of MiFIR the underlying instrument into which the main instrument can be converted should be reported in field 47 of RTS 22. Where the convertible bond, the reverse convertible bond or the reverse convertible note is also in scope of Article 26(2)(a) of MiFIR then the underlying does not need to be populated in the transaction report as only the ISIN of the convertible bond needs to be reported (in field 41 of RTS 22).
This document was automatically extracted from the ESMA EMIR Q&A database.