Although EMIR REFIT (29 April 2024) is upcoming, firms must continue to remain compliant with the current EMIR rules.
ESMA constantly update their Q&As to provide clarity and resolve questions on interpretation. Firms must ensure their reporting is in line with all guidance. Updates to Q&A suggest uncertainty in industry, while ESMA's clarifications may also be helpful in ensuring appropriate controls are in place for EMIR REFIT implementation, including in relation to trade state reports.
On the 31 March, ESMA released new Q&As on a variety of regulatory regimes, including EMIR reporting. The updated EMIR Q&A contains clarifications and new additions on the following topics:
TR Question 9(e) confirms that where a Broker is acting as counterparty to a transaction, it shall populate its LEI in field 1.2 (Reporting Counterparty ID) and leave field 1.8 (Broker ID) blank.
TR Question 59 is a new addition stating that Trade State Reports must contain derivatives maturing on that day. Modifications or corrections to the maturity date are only allowed up to one day following the maturity date. Following that, the new maturity date should be dated before the date part in field 1.1 (Reporting Timestamp). The termination date, on the other hand, cannot be modified or corrected to a future date once the derivative has been terminated. For any modifications or corrections following the use of Action Types 'C', 'Z' or 'P' in a previous report, the new termination date should be prior to the date part in field 1.1. (Reporting Timestamp).
ETDs Reporting Answer 2 was modified to reflect the situation where the reporting counterparty is also the Broker, in which case it should leave field 1.8 (Broker ID) blank in its reports.
Firms should assess their current reporting to ensure that it is in line with all guidance. Novatus can support you with reviewing your EMIR reporting and making the necessary enhancements to your reporting framework. Our Novatus Transaction Reporting Analysis Tool covers all global reporting regimes, including EMIR, MiFID, CFTC, ASIC and more.
Please reach out to our Transaction Reporting lead, Francis Stroudley (firstname.lastname@example.org), for more.