logo

Isda Emir Reporting Agreement

logo

The Association of European Financial Markets (AFME), Future Industry Association (FIA), International Capital Market Association (ICMA), International Swaps and Derivatives Association, Inc. (ISDA) and the International Securities Lending Association (ISLA) have published a new agreement to facilitate reporting on various regulatory systems in the European Union. MRRA establishes common conditions for the mandatory and delegated reporting of derivatives transactions under Operation EMIR, consistent with the amendments introduced by EMIR Refit and securities financing transactions under the SFTR. The agreement was also drawn up to ensure that these conditions remain effective after Brexit. These requirements will be phased in and the next significant deadline under the EMIR Regulation is 12 February 2014, when the obligation to declare derivative contracts to central repositories will begin. Therefore, we take into account in this note the reporting obligation, the ISDA/FOA EMIR (GDR) reporting agreement and certain issues that market participants must face in preparing the launch date. Although the AEMF has sent a letter to the European Commission, indicating to the Commission that the start date of the report on exchange-traded derivative contracts should be postponed by one year to allow operators to obtain additional guidelines for notification of such contracts, the Commission did not accept such a delay and CNN and CNN should be required to comply with reporting obligations for both OTC and Exchange derivatives on February 12, 2014. Transaction reports currently represent the biggest headaches of every EMIR project manager. The 12 February deadline is looming and the sector has not yet fully understood the regulatory requirements of the EMIR reports, let alone completed the implementation of the necessary infrastructure to launch the reports. In this context, the delegated report appeared – and remained – as little more than a point on the horizon. So far, that`s the way it is. The publication of the ISDA/FOA EMIR report delegation agreement provides industry with the tools it needs to begin documenting delegated reporting agreements. While compensation may go too far, it is a very good proposal at first reading, a valuable contribution to the industry`s efforts to meet the requirements, and a genuine attempt to strike a balance between competing sales and purchase requirements.

While this provision may be advantageous for counterparties subject to the EMIR reporting system, but whose derivative contracts are also declared under Dodd-Frank, it will not be available until the European Commission adopts an enforcement act in which Dodd-Frank`s reporting regime complies with the EMIR regulation. Unfortunately, it is not known when this will happen or whether conditions will be accompanied by a distribution of equivalencies. On this basis, counterparties are currently unable to rely on Article 13 and, for the time being, counterparties should be ready to report on February 12, 2014 under the EMIR Regulation. Article 9 of the EMIR Regulation requires “counterparties” to declare to a registered or approved central repository the details of all derivative contracts they enter into and any modification or termination of the contract no later than the following business day. However, many details of the reporting requirement are set out in technical standards that complement the EMIR regulation. Although the reference to “counterparties” initially created some confusion, the AEMF clarified the position in its question-and-answer document: the notification requirement applies only to CCPs and CNN. The Master Regulatory Reporting Agreement (MRRA) gives market participants the opportunity to use a single model to help them manage regulatory obligations and provide reporting services under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR).

Ähnliche Artikel zum Thema:

    Keine Treffer
logo

Keine Kommentare zugelassen.

logo
logo
© 2009 pin-shot.de Der Tischfußball Blog all rights reserved | Designed by elegantthemes | Impressum | Datenschutzerklärung | Partner | webeinträge