23 October 2016


Retired Member

1,975Posts 6,431,596Views 2,302Comments

Data jigsaw

07 August 2014  |  2393 views  |  0

Under the European Short Selling Regulation (SSR) uncovered short sales are banned and investment firms are required to track their net short positions and report them to relevant authorities/the public if they breach certain thresholds. Implementing this is already quite a tall order, but things could potentially become even more onerous in light of the requirement to flag short sales in transaction reporting outlined in MiFIR Article 26. As an unintended consequence, might we see a requirement for brokers to aggregate their net position across the whole firm in real-time throughout the day?

Traders may know whether their own desk or account is going short, but how do they know whether the reporting firm in aggregate is going short? Some respondents to the MiFID II/MIFIR discussion paper suggest the short sale flag should be applied per trading book or account – a reasonable proposal considering implementation efforts. But this also implies that transaction reported short sales will not add up to the reported short selling position under SSR.

The short selling flag is a typical example of the data jigsaw that regulators will have to piece together. The vast amount of data collected under EMIR trade reporting, MiFIR transaction reporting and MiFID II commodity position reporting will not always align, but regulators still have to make sense of it when monitoring markets. The challenge ESMA faces as it starts working through all the responses to the consultation on Level 2 is to harmonise as much as possible, certainly a formidable task!


TagsTrade executionRisk & regulation

Comments: (0)

Comment on this story (membership required)

Latest posts from Retired

Fintech innovation in the B2B space has only just begun

12 September 2016  |  10574 views  |  1 comments | recomends Recommends 0 TagsPaymentsInnovation

Protecting Data with DLP

23 August 2016  |  5031 views  |  0 comments | recomends Recommends 0 TagsSecurityBrexit

How to end what ails online commerce

22 August 2016  |  4585 views  |  2 comments | recomends Recommends 0 TagsPaymentsTransaction banking

What internet retailers need to know about Google’s recent webspam report

08 August 2016  |  8284 views  |  0 comments | recomends Recommends 0 TagsPayments

Modelling fixed income: Why realtime analytics are key

29 July 2016  |  5261 views  |  0 comments | recomends Recommends 0 TagsPost-trade & ops

Retired's profile

job title
member since 2014
Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who's commenting on Retired's posts

Hardeep Singh
Ketharaman Swaminathan
Graham Seel
Gerard Hergenroeder
Konstantin Rabin
Matt Schofield
Anna Robert
Ian Davis
Steve Patel
Aparty Behera
Karim Maalouf