Which statement about a Transaction Report is correct?

Which statement about a Transaction Report is correct?

• A. It is used for pre-trade price discovery
• B. It applies only to Swiss securities traded on Swiss venues
• C. It is optional for foreign venues
• D. It applies to Swiss securities traded at Swiss venues or a foreign venue recognized by FINMA

Answer: (D)

Transaction reporting is a post-trade obligation that feeds regulators with detailed details of trades after they occur. It covers Swiss securities traded on Swiss venues and also trades in Swiss securities that happen on foreign venues that FINMA has recognized for reporting. Because this is about recording actual trades, it’s not used for pre-trade price discovery, which depends on current quotes and order books. The requirement applies to any venue that FINMA recognizes for reporting, so trades on those foreign venues must be reported, not optional. This framing explains why the statement about reporting applying to Swiss securities traded at Swiss venues or a FINMA-recognized foreign venue is correct.

Transaction reporting is a post-trade obligation that feeds regulators with detailed details of trades after they occur. It covers Swiss securities traded on Swiss venues and also trades in Swiss securities that happen on foreign venues that FINMA has recognized for reporting. Because this is about recording actual trades, it’s not used for pre-trade price discovery, which depends on current quotes and order books. The requirement applies to any venue that FINMA recognizes for reporting, so trades on those foreign venues must be reported, not optional. This framing explains why the statement about reporting applying to Swiss securities traded at Swiss venues or a FINMA-recognized foreign venue is correct.