ESMA · ESMA_QA_1534 Answer Published
Position reporting
- Regulation
- Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
- Topic
- Position reporting
- Submitted
- 2017-11-13
- Answered
- 2017-11-13
Question
Should an investment firm acting as broker and using a matched principal model be subject to position reporting?
Answer
[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 4.12] Yes. Any investment firm trading in commodity derivatives contracts traded on a trading venue or in EEOTC contracts is subject to position reporting and should provide a complete breakdown of positions held on own account and on behalf of clients as the investment firm can end up holding a position even if trading on a matched principal basis. It is the investment firm’s responsibility to assess whether the transaction executed results in a change in the positions held on own account and/or on behalf of clients.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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