MiFID II - Target market

Under the MiFID II regulations, a manufacturer / issuer of financial instruments is required to define a target market for every instrument. This target market must be taken into consideration by the distributor of the instruments.

The target market topic falls into two categories, target market and negative target market. The fields of the target market area should, if possible, be completely populated by the issuer. The negative target market area has an optional character. Via the negative target market, a corresponding non-suitability can directly be declared for individual aspects of the target market.

The query profile MiFID II - Target market contains data on the subjects:

• Customer category
• Investment objectives
• Investment horizon
• Risk indicator
• Risk and yield profile
• Financial loss bearing capacity
• Knowledge and experience
• Distribution strategy
• ESG (Environment, Social, Governance) preferences
• Special requirements

These subjects are each presented as target market and negative target market.

The query profile MiFID II - Target market makes it possible to query the target market assignments and to carry out target market controls (Product Governance) necessary with the introduction of MiFID II Art. 16 & Art. 24.

Included data fields in query profile MiFID II - Target market

• GD350W Sustainability - Preferences
• GD350Y Sustainability - Focus
• GD496H Risk indicator
• GD496M Risk and yield profile
• GD496N Financial loss-bearing capacity
• GD496O Knowledge and experience
• GD496P Target market source identifier
• GD496Q Risk indicator (negative target market)
• GD496R Risk and yield profile (negative target market)
• GD496S Financial loss bearing capacity (negative target market)
• GD496T Knowledge and experience (negative target market)
• GD496Y Addendum to the special requirements
• GD496Z Product category on the basis of knowledge and experience
• GD497A Product approval process identifier
• GD497C Risk indicator computation method
• GV1A4 Customer category
• GV1A5 Investment objectives
• GV1A6 Investment horizon
• GV1C0 Distribution strategy
• GV1C1 Special requirements
• GV1C2 Customer category (negative target market)
• GV1C3 Investment objectives (negative target market)
• GV1C4 Investment horizon (negative target market)
• GV1C5 Distribution strategy (negative target market)
• GV1C6 Special requirements (negative target market)
• GV499 Principal adverse impacts
• GV709 Additional information to the Sustainable Finance Disclosure Regulation (SFDR)
• GV721 Naming environmental objectives and social objectives under article 9 of the taxonomy regulation
• GV722 Share of enabling activities
• GV723 Share of so-called transition activities
• GV726 Share of environmentally sustainable economic activities as per taxonomy
• GV727 Total share of sustainable investments
• GV728 Share of ecologically sustainable investments
• GV729 Share of socially sustainable investments
• GV9W9 Sustainability - Label

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

Functional field descriptions and table attributes

An extensive functional field description with the corresponding table attributes can be queried via the optional module wmGuide.

Some examples of selected WM target market fields:

Which customer category has a particular product?

For the target market specifications, the customer category is shown in the linkage field GV1A4. For the negative target market data the customer category is mapped in the linkage field GV1C2. The possible table attributes are:

Investment objectives within the scope of target market requirements

The investment objectives pursued by a specific security are shown in WM field GV1A5. WM data field GV1C3 displays the data for negative investment objectives. The possible attributes are:

Target market source identifier (GD496P)

The target market positions must principally be supplied to WM Datenservice by the respective issuer / manufacturer. In cases where no such information is available, WM Datenservice will determine a substitute suggestion for the target market.

The field GD496P indicates the source of the target market requirements. This can either be the manufacturer (Value 1) or as in the following example WM Datenservice (Value 2):

If the target market data is determined by WM Datenservice, the fields for the negative target market will not be filled.

How is the distribution strategy?

The WM linkage field GV1C0 displays the distribution strategy. The linkage field GV1C5 displays the associated negative distribution strategy. These linkage fields have the following table attributes:

ESG preferences

To implement the Delegated Regulation of the EU Commission published on 21.04.2022 expanding MiFID II with sustainability aspects, WM Datenservice has introduced additional fields for displaying ESG (environment, social, governance) preferences.

These fields are marked as ESG-relevant fields in the Overview of target market fields table.

Further information from WM Datenservice:

• Special information F07a from February 17, 2021
• Special information F07a from September 17, 2021
• Special information F07a from November 04, 2021
• Special information F07a from February 17, 2022

Note:

Please note that all customer and special information from WM Datenservice are password protected since 16.04.2012. If you do not have your login data available or not known, please contact WM Datenservice via E-Mail.

Product approval process identifier (GD497A)

Based on the information given by the issuer, this field identifies whether the financial instrument went through a product approval process and the specification / regulation on which the process is based. Keys 1-4 are based solely on the reporting by the issuer. If no information has been provided, this field will be populated by key 5.

What are the MiFID II target market classification data used for?

Use cases for target market classification data include:

• Review / control of delivered European MiFID template (EMT) fund data against WM data
• Product monitoring by manufacturer and / or sales - Product Governance monitoring responsibility
• Compliance with customer interests through compatibility of the sales strategy with the target market (Art. 24 (2) MiFID II)

Who uses WMACCESS to query MiFID 2 - Target market data?

• Banks
• Financial services provider
• Fund companies
• Securities services provider
• Capital management companies
• Asset management companies

How often are the MiFID II target market data updated?

Every trading day WM Datenservice provides the product MIR II with data on MiFID II - target market classification.

Can the query of MiFID II target market be tested?

Yes, please 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 profile the query fee category T6 applies for price model 1 and 2.

The extensive WMACCESS data spectrum contains data on all MiFID II and PRIIPs topics. These include:

• Reference data for compliance with MiFID II / MiFIR regulation
• Data for ex ante (before purchase) and ex post (after purchase) costs
• Information about the current KID versions

Would you like to receive notification if, for example, the risk indicator (GD496H) 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.