What is an NFC-?
Entering into derivative transactions, you become a ‘counterparty’.
EMIR introduces two types of counterparties: Financial Counterparties (FC) or Non-Financial Counterparties (NFC).
The Technical ISIN Under UK EMIR
Following a joint consultation by the Financial Conduct Authority and the Bank of England, Q&A 4.14 was finalised and added to the UK EMIR Reporting Q&As. It establishes the circumstances in which the technical ISIN may be used as a placeholder identifier in derivative reports. TRAction looks at: what the technical ISIN is; and when […]
What is EMIR 3? Is it the same as EMIR Refit?
Regulatory reporting is complex and with the numerous EMIR updates released by ESMA over the years, it can get quite confusing. Recently, the European Commission has published a proposal called EMIR 3. This new proposal might sound like a major update, however it is unrelated to the upcoming (April 2024) EMIR refit changes which affect derivatives trade reporting.
How Does a Regulator or ARM Ascertain MiFIR Reportability?
The current application of MiFIR requires both the regulators and ARMs to filter through vast quantities of data to determine which transactions should be reported. Trading venues and systematic internalisers (SIs) are obliged to submit reference data for financial instruments to ESMA to be published in FIRDs. This is outlined in Article 27 of MiFIR and Article 4 of Market Abuse Regulation (MAR).
Daylight Saving Time Starts in Europe and the UK
Most European countries alongside the UK will need to turn their clocks forward by 1 hour this Sunday, 31 March 2024. While you enjoy the sun and longer days, you will also need to check that the time settings in your trade/transaction reporting are correct.
Are You Making Regular Enquiries Into Your Trade Reporting?
Accuracy of Reporting and Delegate Oversight – ASIC ASIC’s OTC derivative transaction reporting rules allow reporting entities to delegate their reporting obligations to a third party. In doing so, reporting entities are required to take all reasonable steps to ensure the completeness, accuracy and currency of the information reported (Rule 2.2.6 of the ASIC Trade Reporting […]
Partnership Announcement: ACM Europe Limited x TRAction
ACM Europe Limited has partnered with TRAction to streamline its MiFIR trade reporting obligations. ACM Europe Limited, a global asset management company, has engaged TRAction, a well-known regulatory reporting specialist, to enhance the accuracy and compliance of its MiFIR (Markets in Financial Instruments Regulation) trade reporting processes. The objective of this partnership is to support […]
Derivatives’ Global Impact: Why Trade Reporting Matters
Derivatives are among the most widely used financial instruments in the world today. They are integral to the global financial system, serving as essential tools for risk management, speculation, and investment strategies and supporting everything from corporate balance sheets to pension fund stability. Derivatives are embedded in the financial infrastructure and used by banks, asset […]
The Anatomy of a Regulation
Trade reporting regulations such as EMIR, SFTR and MiFIR articulate key requirements which aim to reduce systemic risk and market misconduct. The architecture of these regulations is not merely a single piece of regulation but contain other layered components, together working as an interconnected framework. EMIR and SFTR (for both EU & UK) essentially have […]
Bonds – When and why are they reportable under MiFIR and EMIR?
Bonds are a common debt instrument traded by financial firms. Are they EMIR reportable as a derivative, or are they traded on a trading venue and MiFIR reportable, or even both? Background Bonds are essentially an IOU and have been around since around 2400 BC in Mesopotamia, originally as grain debt guarantees. Bonds are often […]