November 2013

FSO Alert: EMIR reporting to Trade Repository confirmed to start February 2014

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European Securities and Markets Authority (ESMA) registers first four trade repositories

The European Securities and Markets Authority (ESMA) announced on 7 November the registration of the first four trade repositories (TRs) under the European Market Infrastructure Regulation (EMIR):

  • DTCC Derivatives Repository Ltd. (DDRL), United Kingdom
  • Krajowy Depozyt Papierów WartoĹ›ciowych S.A. (KDPW), Poland
  • Regis-TR S.A., Luxembourg
  • UnaVista Ltd., United Kingdom

All counterparties to derivatives transactions will have to comply with EMIR reporting obligations from 12 February 2014 for all asset classes, both over-the-counter (OTC) and regulated markets traded.

What is the impact of EMIR trade reporting to the industry?

EMIR requires all counterparties (financial and non-financial entities) to report detailed derivatives transactions information to a trade repository. These entities will centrally collect and store transaction data in order to enhance market transparency and enable regulators to monitor systemic risk in the market. The EMIR reporting obligation calls for more detailed trade information compared to current derivatives reporting frameworks in place.

Consequently, impacted market participants, i.e., funds, banks, insurers and commercial companies will face significant implementation efforts.

What short term key actions should be taken?

  • Assess and, potentially, update reporting engines
  • Apply for a (Pre-) Legal Entity Identifier (LEI)
  • Select and implement connection with a Trade Repository

How EY can help?

EY can help you to assess your level of impact and successfully prepare for compliance with the trade reporting obligation as well as with all other EMIR related requirements applicable.

 

Download the FSO Alert. (pdf, 324kb)