TR Answer 39

There is a distinction necessary between (i) scenarios where the block trade was concluded by an investment firm and then allocated to clients and (ii) those scenarios where the block trade was concluded by a fund manager without own reporting obligation and then allocated to individual funds.

(i) In the first case the block trade should first be reported by the investment firm. The investment firm should then report the allocations to the individual clients.

(ii) In the second case, in accordance with General Question 1(a), block trades that are subsequently allocated to individual funds on trade date are not required to be reported. In such cases, the counterparty to the derivative transaction is the individual fund, therefore the allocations should be reported (a) specifying the relevant individual fund (on behalf of which the fund manager has entered into the block trade) as counterparty to the said trade and (b) specifying the allocation of the relevant part of the trade to the relevant individual fund.

Any parts of a block trade that are not allocated on trade date should be reported with the fund manager as the counterparty. This reporting logic would only apply where the allocation post trade date is permitted by the applicable national legislation.