Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Can BClear instruments be reported as Aii transactions?

April 26, 2017aii instruments reported transactions

0

Posted

Can BClear instruments be reported as Aii transactions?

1 Answer

0

Posted

When a transaction is cleared by a clearing house and the instrument executed is exactly the same in all respects as an exchange traded instrument (‘Fungible’ with the exchange traded instruments) the reporting firm has the choice to report this instrument as an Aii transaction (exactly the same as for an on-exchange transaction) or to report these as OTC transactions using the MIC code of ‘XXXX’. However, where the derivative instrument differs in any characteristics from an exchange traded instrument (e.g. Strike Price, Maturity Date – an ‘Isotope’ of the exchange traded instrument) or is a completely bespoke instrument the transaction should always be reported as an OTC transaction using the MIC code of ‘XXXX’.