Euroclear UK & Ireland cuts transaction reporting fees

Source: Euroclear UK & Ireland

Euroclear UK & Ireland announces today that clients selecting to send electronic transaction reports to the Financial Services Authority (FSA) via Euroclear UK & Ireland will pay significantly less as of 1 July 2008.

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 entered 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 Euroclear UK & Ireland. Firms may also send UK and Irish domestic security transaction reports to the FSA via Euroclear UK & Ireland.

Tim May, Chief Executive Officer of Euroclear UK & Ireland, said: "Since activating our Approved Reporting Mechanism status in November 2007, we are sending a considerable number of transaction reports to the FSA every day. 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, said: "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. UBS is platform neutral, pro-competition and evaluates offerings for ongoing commercial and functional attractiveness."

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.

As a proven provider of STP transaction-reporting services, Euroclear UK & Ireland's service:

  • is easy to use;
  • provides complete clarity on what has been reported to the FSA;
  • offers quick validation checks on incorrect reports before they are sent to the FSA; and
  • minimises the risk of over reporting.

To date, rejections from the FSA have been insignificant.

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