Main applicable MiFID II requirements
Your transactions with Societe Generale may be subject to/impacted by MiFID II requirements, notably on:
Scope: Shares admitted to trading on a EU TV or non-EU equivalent TV, including dual-listed shares when sharing the same ISIN (e.g. European stock listed in Asia and Asian stock listed in Europe), and packages
Exemptions: (i) EU shares the trading of which is non-systematic, ad hoc, irregular and infrequent, or (ii) carried out between eligible and/or professional counterparties and that do not contribute to the price discovery process, or (iii) trading in shares/equity instruments not admitted to trading on a RM or not traded on a trading venue, or (iv) transactions between non-IFs.
Trading obligation - derivatives
Certain EUR, USD, GBP IRS and CDS index products must (unless traded with a NFC-) be traded on trading venues or equivalent third-country trading venue
Scope: derivatives subject to EMIR clearing obligation, admitted to trading on at least one TV, which pass the liquidity test – so far certain G3 IRS and some CDS (scope to be extended)
Exemption: trades with a NFC-
Adaptations to market infrastructures - New trading venue
All multilateral systems (including voice) should become Multilateral Trading Facility (MTF) for non-discretionary execution or Organised Trading Facility (OTF) for discretionary execution. This will apply also to non-equity instruments.
Adaptation to market infrastructures - Extension of the regime of Systematic Internaliser (SI) to non-equities
Societe Generale will be a SI for most instruments and will therefore be subject to pre-trade and post-trade transparency requirements for these activities
Who? An Investment Firm is deemed to be a SI on an instrument when it trades client orders against its own account in excess of predefined quantitative criteria (frequency of trading, proportion of deals on the instrument executed on own account and market share in the EU when trading the instrument outside a TV). Societe Generale will be a SI for most instruments.
View the list of instruments for which Societe Generale will be a SI
Pre-trade transparency (not available for now in Asia)
Obligation on TV and SI (such as Societe Generale) to make public, prior to execution, firm quotes in respect of liquid equities as well as liquid bonds, structured finance products, emission allowances and derivatives
What? Publication of two-way firm quotes for a quote size of at least 10% of the standard market size (equity and equity-like) and publication of firm quotes for liquid instruments (bonds, SFPs, emission allowances and derivatives traded on TV).
Waivers to transparency exists, notably in case of significant volume (if orders on RFQs are equal to or above the SSTI) and low liquidity of the instruments
When? During normal trading hours or on request (for illiquid instruments).
How? Publication on a regular and continuous basis and in an easily available manner (SIs can update their quotes at any time + withdraw them under exceptional market conditions – ex: trading suspension).
Obligation on TV and SIs to collect all trading activity carried out on instruments they list and provide investors as quickly as possible with a comprehensive view of actual market prices
What? Publication, on an aggregated basis (without any disclosure of the LEI of clients or the direction of the trade), of ISIN, prices and volumes traded on each time bucket + for OTC trades on listed products, obligation on IFs to report to the corresponding TV as soon as possible the details of each trade to enable further consolidation of all trades on instruments, whether executed on a TV or OTC
When? “as close as technologically possible” and no later than 1 min post-execution for equities and equity-like products and 15 min post-execution for all other listed instruments (to be reduced to 5 min after January 2020)
Who? Execution venues. Societe Generale must report all trades made as a SI.
How? By Societe Generale though a APA
Transaction reporting (extension of the MIFID and EMIR reporting)
Obligation to report relevant transactions on a daily basis to the relevant national competent authority (NCA)
Scope? All products that are tradable a on EEA TV (either effectively traded on such venues or traded OTC) including amendments and cancels, or where the underlying instrument is tradable on a EEA trading venue (single name or index) excluding REMIT carve out and stock lendings and borrowings, repos reportable under SFTR.
What? 65 data fields, including the LEI, ISIN, algorithmic trades, short sale indicator, trader identifier
When? By T+1
Who? Obligation on the IF (or the seller if both parties are IFs) and TV
How? Depending on the country, reporting to the regulator (AMF in France) or to an ARM (e.g. FCA) [in order for us to comply with our reporting obligations we need to obtain your consent to disclose your identity]