Emir

FCA published final UK EMIR Validation Rules and XML schemas

On 26 April 2023 FCA published final UK EMIR Validation Rules and XML schemas to support implementation:

• UK EMIR Validation rules (applicable from 30 September 2024).
• XML Schemas under UK EMIR (applicable from 30 September 2024).
  • Incoming messages
  • Outgoing messages

For more information please click here.

EMIR Refit field UPI – ANNA DSB published OTC ISIN JSON

With regards to EMIR REFIT and new field UPI (unique product identifier) we would like to inform you that ANNA DSB has officially published OTC ISIN JSON templates with UPI code.

The UPI UAT and other services will be published by 8th of March 2023.

For further details please visit: https://www.anna-dsb.com/download/2023-02-13-notification-otc-isin-json-templates-with-upi-code-published/

For more information, please feel free to contact us at office@emirreporting.eu.

ESMA publishes Guidelines and Technical documentation XML schema on EMIR Refit

ESMA is clarifying the legal provisions on reporting and data management under the amended EMIR rules and providing practical guidance on their implementation.

The Guidelines published today will further enhance the harmonisation and standardisation of reporting under EMIR contributing to the high quality of data necessary for the effective monitoring of the systemic risk. Furthermore, increased harmonisation and standardisation of reporting allows to contain the costs along the complete reporting chain – the counterparties that report the data, the TRs which put in place the procedures to verify the completeness and correctness of data, and the authorities, defined in Article 81(3) of EMIR, which use data for supervisory and regulatory purposes. The Guidelines provide clarifications on the following aspects:

• transition to reporting under the new rules,
• the number of reportable derivatives,
• intragroup derivatives exemption from reporting,
• delegation of reporting and allocation of responsibility for reporting,
• reporting logic and the population of reporting fields,
• reporting of different types of derivatives,
• ensuring data quality by the counterparties and the TRs,
• construction of the Trade State Report and reconciliation of derivatives by the TRs,
• data access.

The final report on Guidelines, published today is accompanied by the validation rules and the reporting instructions (here and here), i.e. XML schemas.

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. Finally, the Validation rules document contains also a template for notifications of reporting errors and omissions to the NCAs.

The reporting instructions contain EMIR XML messages which were updated or newly developed based on the revised technical standards and validation rules. A fully standardised format for reporting will eliminate the risk of discrepancies due to inconsistent data. End-to-end reporting in ISO 20022 XML is expected to further enhance data quality and consistency and mitigate the data integrity risks, by reducing the need for data cleaning/normalisation and facilitate their exploitation for various supervisory and/or economic analysis based on the changes presented by the EMIR Refit regulation. The implemented schema sets were designed to ensure the backward compatibility of the data reporting.

Next steps

The final report contains a detailed assessment of the feedback received to the proposals in the consultation paper published in July 2021. ESMA will continue to engage with the market participants with a view to clarifying any remaining doubts and to facilitate a smooth transition to reporting under EMIR REFIT. The guidelines will be translated and published in all EU languages. They will enter into application on 29 April 2024.

For more information please feel free to contact us back at office@emirreporting.eu.

EMIR REFIT ISO 20022 XML from 29 April 2024

EU EMIR REFIT regulatory technical standards (RTS) and implementing technical standards (ITS) have been published in the Official Journal of the European Union on 7 Oct 2022.

EMIR REFIT ISO 20022 XML apply from 29 April 2024.

Key changes:

• Reports submitted to an EU TR must comply with the ISO 20022 XML message standard;
• Responses from the EU TR to submissions must comply with the ISO 20022 XML message standard;
• Unique Product Identifier (UPI) is introduced;
• Unique Trade Identifier (UTI) should be generated in accordance with ISO 23897 Unique Transaction Identifier;
• The number of collateral fields is increased. The overall number of fields is increased to 203;
• The entity responsible for reporting shall promptly notify NCA of the reporting counterparty of any misreporting, significant issues, etc.

This is a non-exhaustive list.

For more information, please feel free to contact us back at office@emirreporting.eu.

ESMA updates Q&As on EMIR implementation

On 21st Nov, 2021 ESMA has published updated Q&As on EMIR implementation.

The amendments include:

• calculation of the clearing threshold;
• hedging definition.

For more information please contact us at office@emirreporting.eu.

ESMA launched a public consultation on its draft Guidelines for EMIR REFIT

Updated EMIR Q&As

On 28 January 2021 ESMA has published an updated EMIR Q&As.

The updates cover:

• Reporting of valuations;
• Procedure for terminating ‘dead trades’ by TRs;

For more information please feel free to contact us at office@emirreporting.eu.

ESMA updates EMIR Q&As for the post-Brexit transition period

ESMA has updated the Questions and Answers on OTC requirements and reporting issues under the European Markets Infrastructure Regulation (EMIR).

The Q&A document clarifies the status after the post-Brexit transition period of legacy derivative transactions executed on UK markets and is relevant for EU counterparties in order to determine applicable EMIR requirements, and for position calculations against clearing thresholds.

In addition, Parts IV and V were amended to clarify the reporting technique for derivatives executed on a third country venue and cleared on the same day.

The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of EMIR. It provides responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of the Regulation. This document aims to ensure that the supervisory activities of the competent authorities under the Regulation are converging along the lines of the responses adopted by ESMA. It should also help investors and other market participants by providing clarity on EMIR requirements.

For more information please feel free to contact us at office@emirreporting.eu.

ESMA Final Report on RTS and ITS under EMIR REFIT

ESMA has published a Final Report on technical standards (RTS and ITS) under the EMIR REFIT Regulation

The report covers:

• data reporting to Trade Repositories (TRs),
• procedures to reconcile and validate the data,
• access by the relevant authorities to data and
• registration of the TRs.

This final report and draft RTS and ITS largely reflect the original proposals included in the consultation paper and focuses on further harmonisation of the reporting requirements as well as enhancements in the counterparties’ and TRs’ procedures on ensuring data quality.

Key proposals

The key proposals included in the technical standards are:

• Alignment with international standards – in particular the global guidance developed by CPMI-IOSCO on the definition, format and usage of key OTC derivatives data elements reported to TRs, including the Unique Transaction Identifier (UTI), the Unique Product Identifier (UPI) and other critical data elements. The introduction of these changes into the EU regulatory framework will foster global data harmonisation and will facilitate compliance for those entities that are subject to derivative reporting requirements in non-EU jurisdiction(s);
• End-to-end reporting in ISO 20022 XML – ESMA proposes that XML schemas developed in line with ISO 20022 methodology are used not only for the communication between the TRs and authorities (as is the case now), but also for reporting from TR counterparties, similar to the requirements in place under SFTR. A fully standardised format for reporting will eliminate the risk of discrepancies due to inconsistent data. While end-to-end reporting in ISO 20022 XML is expected to further enhance data quality and consistency, by reducing the need for data cleaning/normalisation and facilitate their exploitation for various supervisory and/or economic analysis;
• Harmonised data quality requirements across TRs – another cornerstone of the technical standards relates to the enhanced and harmonised data quality requirements for data validation and data reconciliation processes, that take place at the TRs once derivatives are reported to them;
• Simplified rules for extension of registration from SFTR to EMIR – ESMA clarifies the relevant documentation to be provided by TRs willing to extend their registration from SFTR to EMIR in line with the existing requirements for extension from EMIR to SFTR; and
• Standardised process for data access – ESMA includes references to standardise the type of information and the timeline for setting up data access for authorities.

Next steps

The draft technical standards have been submitted to the European Commission, and the proposed timeline for implementation of the technical standards by the reporting counterparties and TRs in the Union is 18 months from the date of their publication in the Official Journal.

In the meantime, ESMA will commence working on the guidelines on reporting under EMIR REFIT as well as on the technical documentation, including XML schemas and validation rules. ESMA aims to provide the industry with the relevant guidance and documentation sufficiently ahead of the reporting start date to ensure a smooth transition to the reporting under the revised rules.

ESMA issues a public statement for issues affecting EMIR and SFTR

On 10 November 2020 ESMA has issued a public statement on the issues affecting EMIR and SFTR reporting following the end of the UK transition period on 31 December 2020.

The public statement covers the following:

• Onboarding to TR;
• Reporting – UK counterparties are not expected to report to EU TRs any derivative concluded on 31 December 2020 and onwards;
• Reconciliation – from 1 January 2021, the derivatives where at least one of the counterparties is an UK-based entity, i.e. EU-UK; UK-EU, UK-UK should not be reconciled. Therefore, they should be also excluded from the inter-TR reconciliation process.
• TR recordkeeping;
• Counterparty recordkeeping;
• Data access;
• Portability of data from a UK-based TR to an EU TR;
• Portability of data to UK TRs;
• Aggregations.

For more information please feel free to contact us at office@emirreporting.eu.