EMIR Reporting Obligations

One of the key directives under The European Market Infrastructure Regulation (EMIR) is the obligation to report all derivatives contracts to Trade Repositories (TR), which are entities regulated by EMIR that centrally collects and maintains the records of all derivatives trade related data.

When does the Trade Reporting Obligation begin?

The EU regulation on Trade Repositories came into force on 16 August 2012. However, full implementation will come into force starting from 1 July 2013. Subject to the authorization of a Trade Repository, the key dates in the EMIR implementation timetable, as currently published by ESMA are:

• Reporting of credit and interest rate derivatives contracts to TRs – 23 September 2013 at the earliest
• Reporting of all other asset class derivatives contracts to TRs – 1 January 2014
• Back reporting of derivative contracts outstanding on 16 August 2012 (and still outstanding on reporting start date) – within 90 days of the reporting start date for that asset class
• Back reporting of derivatives entered into before, on or after 16 August 2012 that are no longer outstanding on reporting start date – theoretically reportable within three years of the reporting start date for that particular asset class

Be advised that the timetable for the trade reporting obligation is subject to any changes that may be decided by ESMA.

Who will be affected?

• All counterparties to all derivative transactions
• Includes financial and non-financial counterparties
• Under EMIR, a counterparty outside the EU does not have to report to a Trade Repository

How will Trade Reporting affect you?

• Covers all derivatives contracts
  • Equity, interest rate, currency, commodity and credit
  • Includes OTC (including those that are not centrally cleared) and exchange traded derivatives (e.g. derivatives traded and cleared on NASDAQ OMX’s markets)
  • Differs from Dodd Frank by including exchange traded derivatives
  • No exemptions for “non-EEA derivatives”
  • Trading venue and underlying assets are irrelevant
• Exchange traded warrants are not included
• No threshold below which derivatives contracts are not reportable
• Includes modifications to the economic criteria to the trade:
  • Novation
  • Modification
  • Changes of valuation or collateralization
  • Terminations and partial terminations

Trade Repositories will receive derivative trade details from different sources and make the information available to all relevant regulators (and a subset of information to the public).

NASDAQ OMX EMIR Trade Reporting Service

NASDAQ OMX already provides a service for Nordic Market Participants for MiFID trade reporting (TRS) to local Financial Supervisory Authorities (FSA) and will extend this reporting service to cover EMIR derivative reporting to Trade Repositories.

NASDAQ OMX offers its members reporting services regarding:

• Establishing connectivity with relevant Trade Repositories
• Reporting of derivatives contracts traded and cleared on NASDAQ OMX’s markets
• Reporting of OTC derivatives transactions that are not traded or cleared by NASDAQ OMX
• Ability for members to append required data to derivatives transactions for reporting
• Daily updates to the Trade Repository of collateral and mark-to-market valuations
• Reporting feedback of submitted reports

NASDAQ OMX further aims to extend its service to include reporting obligations under REMIT for the energy market. Details on this service will follow later.

Reporting Service Flexibility

NASDAQ OMX provides the option of full service reporting of all required data and a complimentary reporting service where NASDAQ OMX and the Customer jointly complete the reports.

Full Reporting

For derivatives cleared with NASDAQ OMX where the Market Participant keeps position segregated accounts per beneficial owner, NASDAQ OMX can complete the Trade Repository report with all required data without the need for interaction from the Customer.

Partial Reporting

For Customers with a setup where NASDAQ OMX does not have access to all required data or where the Customer selects to submit its own reports to a Trade Repository but need NASDAQ OMX to complement their reports with some data, we offer a partial reporting service according to the alternatives described below:

• For Customers that connects to a Trade Repository themselves for reporting, NASDAQ OMX will duplicate the missing data at the Trade Repository to the report created by the Customer.
• Alternatively, the Customer can complete partial reports created by NASDAQ OMX and submit the reports to the Trade Repository through NASDAQ OMX. This option does not require direct connectivity to a Trade Repository for the Customer.
• OTC derivatives transactions that are not traded or cleared by NASDAQ OMX may also be submitted via the service interface. This option, also, does not require direct connectivity to a Trade Repository for the Customer.

Service Interface

The service is provided with a flexible interface where the Customer can select to interact with the service via a provided application or by uploading fixed formatted files.
The Trade Repository application is a user friendly desktop application that enables the Customer to perform the following activities:

• View status of submitted reports
• View status of individual reported transactions
• Search for historical reports
• Review and confirm NASDAQ OMX generated reports
• Complement partial NASDAQ OMX generated reports with additional data before submission
• Create new transactions for reporting
• Export data to external systems

New transactions and complimentary data to partial reports may also by uploaded via the application as CSV-files according to preformatted templates to enable automation and interactions with Customer systems.

For more information

If you have any questions please contact your Key Account Manager or send an e-mail to tradereporting@nasdaqomx.com.