Determining whether a financial instrument is reportable under MiFIR isn’t always straightforward. The scope depends on where the instrument is traded, what it’s linked to, and sometimes even the composition of an index or basket. These details change frequently, and keeping track of them manually can be time-consuming and prone to errors.
To simplify this process, Point Nine has developed an automated MiFIR instrument eligibility solution (the MIFIR Eligibility solution has been up and running since 2018, with several improvements) that checks instruments daily against the latest data from ESMA FIRDS and FCA FIRDS UK. The goal is simple: to help firms stay compliant without having to chase constant updates.
When is an Instrument Reportable?
Under MiFIR, a financial instrument is reportable if it meets any of the following conditions:
- It is admitted to trading or traded on a trading venue, or a request for admission has been made.
- Its underlying instrument is traded on a trading venue.
- It has an index or basket as underlying, and at least one component of that index or basket is traded on a trading venue.
For EU MiFIR, trading venue refers to an EU-authorised venues.
For UK MiFIR, trading venue includes the UK, Gibraltar, and the EU.
This means that even if only one component of an index or basket is listed on a relevant venue, the entire instrument becomes reportable, something easily missed without automation.
Automated Eligibility Updates
Point Nine’s system automatically connects to both ESMA and FCA FIRDS. It loads and updates:
- Daily delta files to capture new, modified, or expired instruments
- Weekly full datasets from ESMA and FCA to ensure alignment with the latest official records
The result is a constantly up-to-date reference point for determining whether an instrument falls under EU MiFIR, UK MiFIR, or both.
How It Works
The solution goes beyond simple lookups. It includes several built-in features designed to support regulatory workflows:
- Automatic reportability check: The system decides if an instrument is reportable or not, based on its trading status and venue information.
- Change alerts: When an instrument’s eligibility changes (for example, it becomes newly admitted or is delisted), the system notifies clients. These alerts can be stored for audit and record-keeping purposes.
- Client notification and control: Clients are informed of any status changes and can decide whether they want to include those instruments in their MiFIR reporting process.
Why Point Nine
As a specialist in trade and transaction reporting under EMIR, UK EMIR, MiFIR, UK MiFIR, SFTR, UK SFTR, and ASIC, Point Nine continuously enhances its reporting ecosystem to reduce manual work and increase data quality.
The MiFIR eligibility module is part of this ongoing commitment, helping firms ensure that only the right instruments are reported, and nothing falls through the cracks.
