Settlement system Euroclear UK & Ireland is to cut the price of sending electronic transaction reports through its system to the UK Financial Services Authority (FSA) from 1 July. The tariff will be reduced from 15 pence to a maximum of 3 pence per report, and to as little as 0.25 pence, depending on monthly reporting volumes.
Under MiFID regulations, which came into force in November 2007, financial firms are no longer obliged to report trading activity directly to their home regulator. Regulators have agreed to transmit relevant reporting data between themselves. Thus, clients may elect to report foreign equity and debt transactions through Euroclear UK & Ireland, even when they are not settled by the entity. Firms may also send UK and Irish domestic security transaction reports to the FSA via Euroclear UK & Ireland.
“Since activating our Approved Reporting Mechanism status in November 2007, we are sending a considerable number of transaction reports to the FSA every day,” said Tim May, CEO, Euroclear UK & Ireland, in a statement. “These unprecedented levels of reporting activity allow us to pass along economies of scale via a reduced tariff.”
Robert Barnes, managing director, market structures, UBS Investment Bank, added, “Post-MiFID, it is encouraging to see Euroclear UK & Ireland continue its entrepreneurial leadership by delivering efficiency and sharing scale economy benefits with users in the form of fee cuts.”
Euroclear UK & Ireland’s automatic settlement-related transaction reporting to the FSA for trades settling in Euroclear UK & Ireland remains unchanged at 2 pence per report, subject to further volume discounts to as low as 0.2 pence.