STSM133030 - CREST: CREST Functionality: agent indicators

Participants entering transaction details into CREST are required to insert a code to indicate the capacity in which they are acting. The codes are:

• P - Principal broker dealer purchase (from client or market)

• S - Principal broker dealer sale (to client or market)

• A - Agent broker dealer purchase or sale

• N - No principal/agent broker or other investment dealing capacity

Custodians and fund managers acting for clients typically do so in an agency capacity unless, under the terms of the counterparty agreement, they take a principal role. To reflect this arrangement, the Agent Indicator field should be populated with ‘A’ when receiving or delivering stock for clients.

Implications of MiFID II

With effect from 3 January 2018, as a consequence of the MiFID II changes, a new Regulatory Technical Standard made under the Markets in Financial Instruments Regulation (MiFIR – Regulation (EU) 600/2014) – specifically (Delegated Regulation (EU) 2017/590) introduced three new trade capacity values as shown below. However the CREST trading capacity indicators remain unchanged, and as such the new trade capacity values are not directly reportable to CREST.

• DEAL - Dealing on own account

• MTCH - Matched principal

• AOTC - Any other trading capacity

DEAL and MTCH relate to principal broker dealing and AOTC is restricted to other trading capacities, which includes agency broking deals