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Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2017-11-17","question_submitted_on":"2017-11-17","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1707, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1707, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1707","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifir/level-3/q-and-a/esma/esma-qa-1707-transaction-reporting.md","body_sha256":"2434b68364db2225fe6414a72ac998350929c0ae477f7677d210bffc9b59ac95"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1707 — Q&A — Transaction reporting [Answer Published]\"\nshortTitle: \"ESMA Q&A 1707 — Q&A — Transaction reporting [Answer Published]\"\nanswer_id: ESMA_QA_1707\ntopic: \"* Transaction reporting\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFIR\"\nmifir_level3: true\nmica_level2: false\nlegal_basis: \"MiFIR\"\ndate: 17 November 2017\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1707\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 17 November 2017\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1707\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1707: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2017-11-17\"\n  question_submitted_on: \"2017-11-17\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1707, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1707, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 17 Nov 2017 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 17 November 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1707)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1707 — Q&A — Transaction reporting \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1707 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 17 November 2017; question submitted 17 November 2017 |\n| **Legal basis** | MiFIR |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Transaction reporting**\n\n### Question\n\nHow should transactions be transaction reported where portfolio management has been outsourced?\n\n***\n\n### Answer\n\n\\[ESMA 70-1861941480-56 MiFIR data reporting Q&A, Q&A 24.7\\]\n\nConsider the following example, where Banks A, B and Firm Z are investment firms:\n\nClient has a portfolio at Bank B.\n\nThe client is a German national, Max Mustermann. His date of birth is 01/04/1974.\n\nBank B has outsourced the portfolio management (discretionary mandate) to Firm Z, which is an investment firm undertaking portfolio management.\n\nFirm Z sends a purchase order to Bank A for execution without meeting the conditions for transmission under article 4 of Commission Delegated Regulation (EU) 2017/590. Firm Z is acting in an ‘any other’ trading capacity.\n\nFirm Z does not have a contract with the Client.\n\nBank A executes the order on a Trading Venue.\n\nBank A transfers the financial instruments from its own account to the account of Bank B just for settlement purposes.\n\nBank B books the financial instruments from its account into the account of the Client.\n\nBank A and Bank B are acting in an own account trading capacity\n\nThe reports by Bank A and Bank B will be as follows:\n\nBank A is receiving instructions from Firm Z without the transmission requirements being met so it will report Firm Z as the buyer in its client side report.\n\nBank B’s counterparty for execution purposes is Firm Z and since Bank B has not met the transmission conditions it will report its client as the buyer and itself, Bank B, as the seller.\n\nBank B has outsourced the discretionary management for its client to Firm Z so there is a power of representation. However, field 12 is only populated where the decision is made under a power of representation and the buyer is a client of the executing entity. Therefore field 12 is only populated in Report 2 of Bank B, since in Report 1 Bank B is itself the buyer.\n\nEven though Firm Z is making the investment decision on behalf of Firm B, field 57 is a mandatory field where a firm is acting in an own account trading capacity since the firm is accepting the risk. Therefore this should be populated with the algo or person in Bank B that is primarily responsible for the decision to delegate.\n\nField 59 is a mandatory field but where the execution decision is made outside the firm it is populated with ‘NORE’. In this scenario the execution decision is being made by Firm Z as it is deciding when and how to execute (by sending orders to Firm A) and therefore this field is populated with ‘NORE’ in Bank B’s reports .\n\nReporting by Firm Z\n\nFirm Z is acting on behalf of Bank B and since Bank B has not met the transmission conditions it will report Bank B as the buyer and Bank A as the seller.\n\nFirm Z is making an investment decision on behalf of Bank B so it will populate field 12 with its LEI and will populate field 57 with the algo or national ID of the person responsible for the investment decision within the firm.\n\nBank A and Bank B are acting in any other trading capacity and Bank B is not meeting the conditions for transmission under article 4 of the Commission Delegated Regulation (EU) 2017/590.\n\nSince the buyer in Bank B’s report is its client and there is a power of representation field 12 is populated with the LEI of Firm Z in Bank B’s report.\n\nSince the execution decision is made outside the firm (being made by Firm Z) field 59 is populated with ‘NORE’ in Bank B’s report.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1707)\n"}