TP ICAP statement on Forward FX Trades from 26 March 2019
28 Mar 2019 00:00
TP ICAP statement on Forward FX Trades from 26 March 2019
We are writing to you to clarify TP ICAP’s forward FX product offering as a result of the ESMA update on MiFIR Data Reporting. From 26th March 2019 a forward FX trade defined as an FX Swap will require the reference data and transaction reporting scenarios to be reported as a single stand-alone financial instrument. Under the pertinent MiFIR definitions, forward FX trades may be traded as either simple forwards (Outright FX Forwards), as packages of cashflows (FX Strategy) or as Single FX Swap Instruments (FX Swaps).
TP ICAP venues* will continue to offer forward FX trades as packages of cashflows or FX Strategy, as per the EVIA** definition - A simultaneous and contingent execution of contracts to a minimum of two forward payments which may be in conjunction with one or more spot contracts. We will have the ability to offer FX swap instruments with a single ISIN in the future, but do not plan to offer this instrument from 26th March 2019. We will align our Rulebooks and Ratecards ahead of 26th March to ensure clarity.
We believe this decision reflects the financial instruments that are offered on our venues and across the market, serves the best interests of market liquidity and provides certainty of workflows.
*TP ICAP UK MTF, ISL OTF, TPE OTF and TPE MTF will offer FX Strategy trades.
**
https://cdn.evia.org.uk/content/FX/FX%20Swaps%20Definitions%20of%20Services;%20EVIA%20Trading%20Venues;%20December%202018.pdf
Please see link below for details.
https://www.icap.com/what-we-do/our-mifid-ii-venues/icap-securities-otf.aspx
Capitalised terms used in this Market Notice shall have the meaning ascribed to them in the ICAP Securities OTF Rulebook.
Please direct any questions regarding this Market Notice to:
Email:
ICAP Securities OTF
Post:
ICAP Securities Limited,
2 Broadgate, London,
EC2M 7UR,
United Kingdom
