EMIR Refit: Evolution of the reporting to Trade Repositories
It has taken time for this subject to come to a conclusion, as the consultation conducted by the European Securities and Markets Authority (ESMA) on this major development in reporting to the Trade Repositories (TRs) ended in July 2020 and resulted in proposals for delegated acts transmitted to the European Commission (EC) in December 2020.
Last June, the EC adopted the 6 texts proposed by ESMA. This development met two objectives:
Facilitate the processing of declarations by introducing new approaches (notion of action/event), new rules, etc.
Align with international guidance as developed by the CPMI1 and IOSCO2 Working Group for the harmonisation of key data elements of OTC derivatives (Harmonisation Group).
After the period of non-objection by the Parliament and the Council, the texts were published in the EU OJ on 7 October 2022, specifying a date for the revision of the reporting to regulators: 29 April 2024.
The package of 6 texts consists of:
3 texts on trade repositories, regarding their application for registration or extension, as well as the access procedure to derivatives and technical and operational provision details;
1 text specifying the data reconciliation procedures between TRs and the procedures to be applied by the TR to verify the reporting counterparty’s compliance with the reporting requirements and to verify the comprehensiveness and accuracy of the reported data;
2 texts on the declaration itself: minimum details of the data to be reported to the TRs and the type of reports to be used, standards, formats, frequency and methods and reporting modalities.
The last two texts, the most important for the entities involved in reporting to the TR, are RTS3 2022/1855 and ITS 42022/1860.
1CPMI: Committee on Payments and Market Infrastructures
2 IOSCO: International Organization of Securities Commissions
3 RTS: Regulatory Technical Standard
4 ITS: Implementing Technical Standard