MiFID II - Cost transparency

Besides the definition of the target market, the detailed disclosure of costs (ex ante and ex post) is one of the major innovations and challenges from the requirements of the new version of the Financial Market Directive and Regulation (MiFID II / MiFIR) as stated in Article 24(4)c MiFID II.

As a service provider of securities-related information, WM Datenservice represents the product costs that result from the instrument; which are independent of the respective financial service provider.
The data for the cost transparency are divided into two query profiles:

• Data with master data character (only the current value respectively; low adjustment frequency) in the query profile MiFID II - Cost Transparency
• Date-related data with a complete history in query profile Ongoing indicators (J)

The cost transparency data is divided into two categories:

• exAnte (before purchase / estimate costs)
• exPost (after purchase / actual costs incurred)

Another distinction arises from the different types of securities (investment funds / securitised derivatives).

MiFID II Cost transparency data for funds

Display of the cost data for an investment fund with a swing pricing and without a performance fee. The estimated running costs are 0.1 % and the estimated transaction costs are 0.23 % of the NAV as of 29.12.2017. The actual redemption costs include a zero notification and the maximum back end load is 1 % of unit value (net).

Cost transparency data for structured products

Display of the cost transparency data for a structured product with fair value and running costs.
The estimated running costs for this index certificate in relation to one calendar year are 0.830 Euro as of 12.03.2018.
The entry costs calculated by the issuer on 14.02.2018 were 0.38780810 Euro, the exit costs 0.09219191 Euro and the actual running costs accumulated over the calendar year were stated with 0.10402400 Euro.

The query profile MiFID II - Cost transparency contains all relevant fields with master data character (only the current value respectively; low adjustment frequency) for the cost structures.

Included data fields in query profile MiFID II - Cost transparency

The query profile MiFID II - Cost transparency includes amongst others the following data fields:

• GD326 Performance fee identifier
• GD496U Fair value instrument
• GD496V Instrument with running costs (prod. with fair value)
• GD496W Swing-pricing identifier
• GV1C7 Estimated running costs per calendar year (prod. with fair value)
• GV1D0 Running costs (estimated)
• GV1D1 Transaction costs (fund)
• GV1D2 Event-related costs (fund)
• GV1D3 Actual redemption costs (fund)
• GV305 Minimum / maximum back-end load

In addition, the most recent valid value for the following data fields is displayed:

• JV001 Entry costs (prod. with fair value)
• JV002 Exit costs (prod. with fair value)
• JV003 Running incremental costs per calendar year (prod. with fair value)
• JV005 Periodical total fund costs

Please note that, for licensing reasons, most of the above GD fields are exclusively available in the wmProfile query profile MiFID II - Cost transparency and thus are not available in the wmView Securities Master Data.

In the query profile Ongoing indicators (J), date-related data with complete history for cost transparency is displayed.
For licensing reasons, a query search comprises maximum a period of up to 31 days. To query a larger time frame, multiple search queries can be made.

One exception concerns the selection of JV005 records. From the given date, only the years from the search criteria are taken into account. You can find examples of this selection in our news.

Complete list of the included WM fields

• JV001 Entry costs (prod. with fair value)
• JV002 Exit costs (prod. with fair value)
• JV003 Running incremental costs per calendar year (prod. with fair value)
• JV005 Periodical total fund costs
• JV006 Delta/SET by using an end of day delta

What are the MiFID II - Cost transparency data used for?

Some examples of use cases for MiFID II cost data are:

• Creation of a statement of holdings at the end of the quarter according to EU Regulation 2017/565 of 25.04.2016, Article 60 (Reporting obligations for portfolio management)
• Provision of the necessary cost information (exAnte / exPost) for disclosure

Who uses WMACCESS to query cost transparency key figures?

• Private investors
• Banks
• Custodian banks
• Financial services provider
• Fund companies
• Securities services provider
• Capital management companies
• Asset management companies

Functional explanations of cost data fields

The optional module wmGuide can be used to query extensive functional field descriptions for all WM fields. In the case of linkage fields (GV1C7), the table attributes ​​for all auxiliary fields (GV1C7_A, GV1C7_B ...) can also be queried.

Some examples of selected linkage fields:

How often are the MiFID II cost transparency data updated?

On every trading day, WM Datenservice provides MIR II and MIR II C products with data on MiFID II cost transparency.

Can the query of MiFID 2 cost transparency data be essayed?

Yes, in our test system you can test free MiFID II cost transparency data. For example with ISIN DE000CY4FKA7. Apply for a free test access in order to query the target market transparency for free.

Convinced?

Please download the contract and carry out a free express installation by email.

Query costs:

For this query profiles the query fee category T3 applies for price model 1 and 2.

In addition to the cost data for MiFID 2, further regulatory data is covered in the WMACCESS extensive data spectrum. Including:

• Leverage product identifier, complexity as of MiFID II
• Product Governance
• Data on the Complexity indicator (PRIIPs)

Would you like to receive notification if, for example, the estimated running costs per calendar year (prod. with fair value) (GV1C7) changes for a security you manage? With our service for monitoring WM data, a portfolio-based monitoring is possible.

You will automatically be informed about changes in the securities you manage.

Contact us for further details and prices.