EMIR REFIT
On 29 April 2024 EMIR REFIT, i.e. regulatory technical standards (RTS) and implementing technical standards (ITS) will apply.
Some of the key changes are:
- ISO 20022 XML message standard for submissions to EU TR;
- ISO 20022 XML message standard for receiving acknowledgement files from EU TRs;
- New field “Entity responsible for reporting”;
- Unique Product Identifier (UPI);
- Unique Trade Identifier (UTI) generation in line with the global UTI guidance;
- New field “Event Type” with field “Action Type”;
- New collateral fields and increase of the number of reportable fields to 203;
- notifications to the relevant competent authority in case of any misreporting, significant issues, etc.
ISO 20022 XML message standard
ISO 20022 XML EMIR REFIT outgoing message standard (i.e., for submissions to EU TR) is available here.
ISO 20022 XML EMIR REFIT incoming message standard (i.e., response files from EU TR) is available here.
Please note that on 6 Sept 2023 ESMA published updated versions of XML schemas and validation rules.
The validation rules document sets out detailed technical rules on how the TRs should verify the completeness and accuracy of the reported data as well as the conditions and thresholds to be applied to determine whether the values reported by both counterparties match or not.
New field “Entity responsible for reporting”
ESMA adds field “Entity responsible for reporting”(field 1.3) in order to identify (with the relevant LEI) the company that is responsible for the reporting similar to the one under SFTR.
ESMA provides the table below:
Population of the fields pertaining to counterparties, report submitting entity and entity responsible for reporting
| Scenario | Report submitting entity (RSE), field 1.2 | Entity responsible for reporting (ERR), field 1.3 | Counterparty 1, field 1.4 | Counterparty 2, field 1.9 | |
|---|---|---|---|---|---|
| FC reporting on behalf of NFC- in accordance with Article 9(1a), OTC derivatives | Leg 1 | FC LEI | FC LEI | FC LEI | NFC- LEI |
| Leg 2 | FC LEI | FC LEI | NFC- LEI | FC LEI | |
| FC reporting on behalf of NFC- in accordance with Article 9(1a), OTC derivatives and FC delegating to RSE | Leg 1 | RSE LEI | FC LEI | FC LEI | NFC- LEI |
| Leg 2 | RSE LEI | FC LEI | NFC- LEI | FC LEI | |
| NFC- opting out from FC reporting on their behalf in accordance with Article 9(1a) | Leg 1 | FC LEI | FC LEI | FC LEI | NFC- LEI |
| Leg 2 | NFC- LEI | NFC- LEI | NFC- LEI | FC LEI | |
| NFC- opting out from FC reporting on their behalf in accordance with Article 9(1a) FC delegating to RSE, NFC delegating to RSE2 | Leg 1 | RSE LEI | FC LEI | FC LEI | NFC- LEI |
| Leg 2 | RSE2 LEI | NFC- LEI | NFC- LEI | FC LEI | |
| NFC+ delegating to FC | Leg 1 | FC LEI | FC LEI | FC LEI | NFC+ LEI |
| Leg 2 | FC LEI | NFC+ LEI | NFC+ LEI | FC LEI | |
| NFC+ delegating to FC and FC subdelegating to RSE | Leg 1 | RSE LEI | FC LEI | FC LEI | NFC+ LEI |
| Leg 2 | RSE LEI | NFC+ LEI | NFC+ LEI | FC LEI | |
| Management company / AIFM (IFM) reporting on behalf of the fund under Article 9(1c) | Leg 1 | LEI IFM | LEI IFM | LEI fund | LEI CPT |
| Leg 2 | LEI CPT | LEI CPT | LEI CPT | LEI fund | |
| Management Company / AIFM (IFM) reporting on behalf of the fund under Article 9(1c) and delegating to the CPT | Leg 1 | LEI CPT | LEI IFM | LEI fund | LEI CPT |
| Leg 2 | LEI CPT | LEI CPT | LEI CPT | LEI fund | |
| Management Company / AIFM (IFM) reporting on behalf of the fund under Article 9(1c) and delegating to a RSE (third party) | Leg 1 | LEI RSE | LEI IFM | LEI fund | LEI CPT |
| Leg 2 | LEI CPT | LEI CPT | LEI CPT | LEI fund | |
| FC trading with NFC- and the contract is an ETD | Leg 1 | FC LEI | FC LEI | FC LEI | NFC- LEI |
| Leg 2 | NFC- LEI | NFC- LEI | NFC- LEI | FC LEI |
Unique Product Identifier (UPI)
OTC derivatives should be identified in field 2.8 (“Unique product identifier (UPI)”) using an ISO 4914 Unique Product Identifier (UPI) code.
The UPIs will be issued by ANNA DSB. Currently the UAT environment of ANNA DSB is available at uat.anna-dsb.com.
In case field “UPI” is populated with data, the trade repositories will check whether this is a valid value. The field “UPI” is reconcilable and there is no tolerance. In order to avoid any reconciliation breaks, please make sure that both counterparties use the same UPI for the relevant derivative contract.
Field Unique Trade Identifier (UTI) under EMIR REFIT
The Unique Trade Identifier (UTI) is a unique code of a derivative between two counterparties. A pair of counterparties should use a specific UTI for one single derivative, and not reuse that same UTI to report any other derivative under EMIR.
The same principle applies to the UTIs generated for the derivatives reported at a position level. The UTI must be identical in the reports of both counterparties entering into a derivative.
According to art. 7 of the ITS, ISO 23897 UTI shall be composed by:
– the LEI of the entity which generated that UTI followed by
– a code containing up to 32 characters which is unique at the level of the generating entity.
ESMA has endorsed the use of IOSCO’s technical guide for harmonization of the UTI as well as the ‘waterfall’ approach for determining the entity responsible for generating the UTI.
As per art. 7(3) of the ITS, ESMA applies the waterfall approach for determining the entity responsible for generating the UTI:
- for cleared derivatives (cleared by a CCP as defined in art. 2(1) of EMIR: “‘CCP’ means a legal person that interposes itself between the counterparties to the contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer;”), the UTI shall be generated at the point of clearing by the CCP for the clearing member (CCP -> CM). A different UTI shall be generated by the clearing member for its counterparty for a trade in which the CCP is not a counterparty.
- for centrally-executed but not centrally-cleared derivatives, the UTI shall be generated by the venue of execution for its member;
- for derivatives other than those referred to in points (a) and (b), where either counterparty is subject to the reporting requirements in a third country, the UTI shall be generated pursuant to the rules of the jurisdiction of the counterparty that must comply first with those reporting requirements.
Where the counterparty subject to reporting under Article 9 of Regulation (EU) No 648/2012 must comply first with the reporting requirements, the entity responsible for generating the UTI shall be as follows:
(i) for derivatives that were centrally-confirmed by electronic means, the trade confirmation platform at the point of confirmation;
(ii) for all other derivatives, the counterparties shall agree on the entity responsible for generating the UTI. Where the counterparties fail to agree, the counterparty whose LEI is first based on sorting the identifiers of the counterparties with the characters of the identifier reversed shall be responsible for the generation.
Where the applicable laws of the relevant third country provide for the same reporting deadline as the one applicable to the counterparty subject to reporting under Article 9 of Regulation (EU) No 648/2012 pursuant to first subparagraph of Article 9(1) of Regulation (EU) No 648/2012, the counterparties shall agree on the entity responsible for generating the UTI.
Where the counterparties fail to agree, and the derivative was centrally-confirmed by electronic means, the UTI shall be generated by the trade confirmation platform at the point of confirmation.
If the UTI cannot be generated by the trade confirmation platform at the point of confirmation, and the details of the derivative have to be reported to a single trade repository, that trade repository shall be responsible for generating the UTI.
If the UTI cannot be generated by the trade repository to which the details of the derivative have been reported, the counterparty whose LEI is first when sorting the identifiers of the counterparties with the characters reversed shall be responsible for the generation;
(d) for derivatives other than those referred to in points (a), (b) and (c), that were centrally-confirmed by electronic means, the UTI shall be generated by the trade confirmation platform at the point of confirmation;
(e) for all derivatives other than those referred to in points (a) to (d), the following shall apply:
(i) where financial counterparties conclude a derivative with non-financial counterparties, the financial counterparties shall generate the UTI;
(ii) where non-financial counterparties above the clearing threshold conclude a derivative with non-financial counterparties below the clearing threshold, those non-financial counterparties above the clearing threshold shall generate the UTI;
(iii) for all derivatives other than those referred to in points (i) and (ii), the counterparties shall agree on the entity responsible for generating the UTI. Where the counterparties fail to agree, the counterparty whose LEI is first based on sorting the identifiers of the counterparties with the characters of the identifier reversed shall be responsible for the generation.
4. The counterparty generating the UTI shall communicate the UTI to the other counterparty in a timely manner and no later than 10:00 a.m. Coordinated Universal Time of the working day following the date of the conclusion of the derivative.
5. Notwithstanding paragraph 3, the generation of the UTI may be delegated to an entity different from that determined in accordance with paragraph 3. The entity generating the UTI shall comply with the requirements set out in paragraphs 2 and 4.
New field “Event Type” in combination with field “Action Type”
The new field “Event type” is providing information about the type of business event triggering a given report.
The table below specifies the allowable combinations of action types and event types, as well as sets out whether they apply at trade level, position level or both. The last column of the table indicates when a given action type can be reported without an event type.
Reporting of outstanding derivatives under the revised rules.
Update of all derivatives outstanding on the reporting start date 29 April 2024 – transition period 180 days.
The validation rules and XML schemas allow for reporting of UTIs that tare not fully compliant with the new requirements for those derivatives that were concluded before the reporting start date.
For more information, please feel free to contact us at office@emirreporting.eu.