ESMA w dniu dzisiejszym znowelizowane Q&A dotyczące Rozporządzenia EMIR – Implementation of the Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR).
Nowością jest temat nr 44: Transition to the new EMIR TS on reporting, który podzielony jest na 4 dodatkowe pytania:
- Will the counterparties be obliged to submit reports to update the old outstanding trades upon the application date of the revised technical standards? If so, will those reports have to be submitted in accordance with the revised standards?
- How will the reports related to old outstanding trades be validated?
- How the counterparties should report updates related to the outstanding complex derivatives, in the case where they were reported in one report with a single UTI but would be expected to be decomposed and reported in more than one report under the revised rules?
- Are the expired trades expected to be updated? If so, how will the reports relating to the expired trades be validated?
- As set out in the Article 9(1) of EMIR, “Counterparties and CCPs shall ensure that the details of any derivative contract they have concluded and of any modification or termination of the contract are reported to a trade repository”. Consequently, the counterparties will be required to submit the reports related to the old outstanding trades only when a reportable event (i.e. modification or termination of the trade) takes place. All the reports submitted upon the application data of the revised technical standards on reporting under EMIR must be compliant with those standards, irrespective of when the original trade was concluded.
- Validation rules to be applied upon the application date of the revised technical standards on reporting will be amended to account for the changes introduced in the revision of the standards. TRs will be expected to apply those rules to all the reports. In particular, the TRs will be expected to verify if the report contains all the fields specified as mandatory or conditionally mandatory for a given action type. For example, the counterparties that are obliged to submit daily “Valuation” reports will need to provide the newly required information on the initial and variation margins. With respect to the “Modification” and “Correction” counterparties should consider different implementation measures that can be put in place by the TRs:
- The counterparties that report to the TRs which will require full messages to be sent for the “Modifications” and “Correction” reports will need to provide all the applicable data elements in each report with those action types.
- In the case of the TRs that accept partial messages for the “Modification” and “Correction” reports (i.e. messages containing only the strictly mandatory fields such as UTI or counterparties’ IDs and the fields that are modified/corrected), those TRs will need to ensure that the counterparties provide all the applicable data elements when sending the “Modification” or “Correction” report for the first time upon the application date of the revised technical standards.
- When reporting updates related to the outstanding complex derivatives, the counterparties should maintain the same reporting logic as applied in the original report with action type “New” so that the UTIs do not have to be agreed retrospectively for historical trades. This means that if a complex derivative contract was originally reported in one report with a single UTI, it is not expected to be decomposed into several reports in order to report a modification or correction of that derivative contract.
- The expired trades are not expected to be modified. If a counterparty identifies a mistake in the previous submissions and sends a “Correction” report, such report will be validated in accordance with the revised validation rules.