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 start date has been subject to the authorization of Trade Repositories, and the 7th of November 2013 four Trade repositories were authorized. ESMA updated version of EMIR Implementation timeline shows the 12th of February as the start date for trade reporting, for all derivative asset classes and for both ETD and OTC derivatives.
Other relevant dates for reporting are:
- 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 –reportable within three years of the reporting start date for that particular asset class
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
- Differs from Dodd Frank by including exchange traded derivatives
- No exemptions for “non-EEA derivatives”
- Trading venue and underlying assets are irrelevant
- No threshold below which derivatives contracts are not reportable
- Includes modifications to the economic criteria to the trade:
- 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.
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.
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 service 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
- Create new transactions for reporting
- Export data to external systems
New transactions may also be uploaded via the application as CSV-files according to preformatted templates.
For more information
If you have any questions please contact your Key Account Manager or send an e-mail to email@example.com.