Hello there,
In some cases we have FX forwards that satisfies the “means of payment” exclusion, those FX forwards would not be
considered financial instruments, and therefore would fall outside the scope of MiFID II.
Question:
1.What tag in FIX5.0 should we use to tell that this intruments is not financial and that the reason is “Means of payment”.
Br Johan
I would say that it is not about the instrument but about the transaction that is used as a “means of payment”. It is still an FX forward trade, just the purpose excludes it in the context of MiFID II.
It sounds similar to one of the TrdType(828) values for MiFID, i.e. 47 = “Financing transaction”. TrdType(828) permits user defined values (1000 or above), e.g. you can use 1000 = “Means of payment”.
@johanb - can you explain what is meant by “means of payment”? Or point to the exclusion text in MiFID II?