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F7 MiFID II FAQ

F7 MiFID II FAQ

Please find below a list of frequently asked questions from our members concerning MiFID II and its impact on Eurex Repo F7. This list will be updated as we get further enquiries and questions from members.

General MiFID II

 

When does MiFID II come into effect?

MiFID II comes into effect on 3rd January 2018.

How does MiFID II affect F7?

The main impact for F7 users is the Investment Decision Maker and the F7 Throttling Solution.

 
 
 

Investment Decision Maker

 

Who is the investment decision maker?

The Investment Decision Maker may be:
• The executing trader
• Another individual (National Id required)
• An algorithm (applies only via the F7 API)

When is the investment decision maker required in F7?

With the entry of any pre-trade action into F7 (e.g. quote, addressed offer, etc.)

What is the National Id?

The identifier of a natural person responsible for the investment decision (format differs by country, please see RTS22 Annex II).

When is the National Id required?

When the investment decision maker is not the executing trader or an algorithm.

Do I have to enter the National Id when the investment decision maker is the executing trader?

No, Eurex Repo as a trading venue needs to keep records of orders advertised through its system for at least five years, so they can be provided to the competent authority (BaFin) if requested. This information is currently being collected for all F7 traders.

Does F7 offer support for frequently used National Ids?

Yes, for GUI users there is a National ID list manager under Tools (this is also supported via the F7 API).

How do I enter Investment Decision Maker on the F7 GUI?

An Investment Decision Maker field has been added to all GUI screens where required. Traders can enter a National Id or check Executing Trader. It is possible to set a general preference per segment in My Preferences.

Can I set a default Investment Decision Maker?

Yes, GUI users may set a general preference per segment in My Preferences.

The F7 release 2.4 comes ahead of the MiFID II go live. What shall I put in the National Id field?

Ideally, customers should already enter the correct Investment Decision Maker from the introduction of release 2.4 on 11 September 2017.
If this is not possible, it is strongly recommended that F7 GUI users set their defaults in My Preferences to “Executing Trader” until latest 03 January 2018 when the regulation comes into effect.

How do I enter Investment Decision Maker on the F7 API?

All pre-trade requests have been enhanced with new fields for Investment Decision Maker – please see the F7 API Manual for further details.

 
 
 

Eurex Repo’s F7 Throttling Solution

 

Why has Eurex Repo introduced a throttling solution?

MiFID II requires that all trading venues must introduce a throttling solution to ensure capacity and resilience in extreme market conditions.

What types of throttles have been implemented?

• A central throttle for all incoming pre-trade actions entered through all input sources.
• A maximum number of pre-trade actions that can be entered via the F7 GUI Position Board.
• A limit to the number of F7 API Master Data requests over a given timeframe.