Are Rolling Spot Forex Transactions reportable?

October 12, 2017

Rolling Spot Forex transactions are reportable under EMIR.

The EU Commission (EC) has stated that: “As opposed to spot trading where there is immediate delivery, a rolling spot FX contract can be indefinitely renewed and no currency is actually delivered until a party affirmatively closes out its position. This exposes both parties to fluctuations in the underlying currencies.

Hence rolling spot foreign exchange contracts are a type of derivative contract (i.e. either a forward or a financial contract for difference) relating to currencies and are considered financial instruments as defined under MiFID (see Section C(4) or (9) of Annex I of Directive 2004/39/EC).”

http://ec.europa.eu/finance/koel/index.cfm?fuseaction=question.show&questionId=982