FESE Response To CESR’s Consultation On Level 3 Guidelines On MiFID Transaction Reporting

FESE wants to see a transaction reporting regime that is efficient, cost-effective and clear. We broadly support the objectives of CESR with respect to those aspects of transaction reporting detailed in this consultation. We support greater supervisory convergence and consistency, where these are properly justified and based on a thorough cost-benefits analysis. It is important that the various national regimes governing the matters detailed in the consultation are consistent across Europe. Thus we urge CESR to amend the definition of a transaction by deleting the phrase “at least” which might have the effect of inducing divergent national regimes. Moreover, while we agree that in certain cases the inclusion of client-facing firms in the definition of a transaction will be necessary and useful, we encourage CESR to find a way of ensuring that the resulting implementation of this definition is consistent across the EU. In particular, separate reports should be avoided when a chain of transactions in fact constitutes only one: market/firm - firm - client for same quantity same price.