EMIR Reporting
European Market Infrastructure Regulation
Under the European Market Infrastructure Regulation (EMIR), all counterparties are required to report details of any derivative contract they have concluded, or which the counterparty has modified or terminated. Due to Brexit, the EU regulations have been onshored as UK EMIR under the European Union (Withdrawal) Act 2018. On this page, EMIR refers to both EU and UK EMIR unless otherwise specified.
What does it stand for?
European Market Infrastructure Regulation
What does it focus on?
TRAction manages every stage of the transition effectively and without complication
Purpose
Regulate OTC derivatives transactios in European Union
Reporting obligations
All counterparties are required to report details of any derivative contract they have entered, modified or terminated.
EU EMIR
The original EMIR remains in force for EU member states. It continues to evolve under ESMA.
VS
UK EMIR
The EMIR regime was onshored into UK regulation. Over time it will diverge from the EU version as the FCA updates it.
Read more about the difference between EU EMIR and UK EMIR
EMIR Reporting Requirements Involve:
Reporting all derivative contracts - both over-the-counter (OTC) and exchange-traded;
Clearing eligible OTC derivatives;
Measures to reduce counterparty credit risk and operational risk for bilaterally cleared OTC derivatives;
Common rules for central counterparties (CCPs) and for Trade Repositories (TRs); and
Rules on the establishment of interoperability between CCPs.
Who has an EMIR reporting obligation?
EMIR requires all counterparties and CCPs to report details of any derivative contract (with the underlying asset classes – interest rate, FX, credit, equities and commodities) they have concluded and of any modification or termination to TRs.
EMIR RECOGNISES 2 TYPES OF COUNTERPARTIES TO A CONTRACT:
Financial Counterparties (FC) – investment firms, fund managers, banks, insurers etc.; and
Non-Financial Counterparties (NFC) – entities not qualified as a financial counterparty, including those not involved in financial services.
EACH COUNTERPARTY MUST REPORT THEIR LEG OF A TRADE UNLESS:
one counterparty agrees to report on behalf of another counterparty by prior agreement;
a counterparty to a trade has delegated the reporting obligation to a third-party; or
a trade is executed between a FC and a NFC- where the FC will be responsible and legally liable for reporting on behalf of itself and the NFC-.
Where one counterparty reports on behalf of another counterparty, or a third-party reports a trade on behalf of one or both counterparties, the report details will include the full set of details as required by each counterparty.
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trade reporting
What to report and to whom?
Financial Counterparties (FC) and Non-Financial Counterparties (NFC) trading in derivatives must report details of all derivatives trades via a TR. This includes all the details of trades and any event thereafter that affects the valuation or the terms of the trade. It also includes identification of the country of the counterparty (country of incorporation for legal entities, country of residence for natural persons).
Any derivative contract is required to be reported under EMIR reporting requirements, and includes:
- financial derivatives settled physically or in cash;
- commodity derivatives that must or may be cash settled;
- physically settled commodity derivatives that are traded on a regulated market; and
- physically settled commodity derivatives that have characteristics of other derivative financial instruments.
When do reports have to be made?
Reports are required to be submitted to a registered TR no later than one working day after the trade has been made (T+1).
How can we help you?
TRAction can provide you with delegated reporting solutions in accordance with the reporting requirements outlined above. We help you understand your EMIR trade reporting obligations and completely simplify your reporting process. Depending on how our client’s system works, TRAction has 3 different reporting methods ready to be tailored to our clients’ needs.
If you want to learn about our services, please get in touch with us.
TRAction can provide you with delegated reporting solutions in accordance with the reporting requirements outlined above. We help you understand your EMIR trade reporting obligations and completely simplify your reporting process. Depending on how our client’s system works, TRAction has 3 different reporting methods ready to be tailored to our clients’ needs.
If you want to learn about our services, please get in touch with us.
Regulatory Resources
Further information
Understanding your reporting obligations and determining whether a third party reporting solution will save you costs and internal resources are important steps towards compliance with your trade and transaction reporting requirements. Choosing a strategic approach to compliance will give you a competitive advantage and ensure you avoid penalties for non-compliance. To make things easy, we’ve created the User Friendly Guide to Transaction Reporting in Europe. Read more.
There are a number of reporting regimes including EMIR, MiFID II/MiFIR, SFTR and Best Execution, all of which affect Investment Firms (IFs) in different ways. Read more to see the regulatory reporting required by IFs.
TRAction has outlined the key differences between EMIR and MiFIR. Our team has also pointed out some of the issues that investment firms need to be aware of under EMIR and MiFIR, so that you can stay compliant with the trade/transaction reporting requirements. Read more.
As a delegated reporting service provider, TRAction is asked a lot of questions regarding EMIR, MiFIR and SFTR reporting. That’s why our team has put together some of our most frequently asked questions, so that you can learn how to seamlessly report transactions under multiple regimes. Read more.
We’ve identified the 3 most common errors in the data we receive from our clients:
- NonReportingPartyCountry field populated with invalid country code
- UTI reused for a new trade
- Invalid LEI used
ESMA asks for any collateral transferred, between two counterparties to a transaction, to be reported in EMIR Trade Reports. Collateral can be reported on a per position basis or on a portfolio basis. Read more.
While EMIR and MiFIR trade and transaction reporting rules allow reporting entities to delegate their reporting obligations to a third party, they remain ultimately responsible for ensuring the details of their transactions are reported correctly and accurately under Art 9(1) of EMIR & Art 26(7) of MiFIR. Read more.
Each Investment Firm (IF) is required to make a quarterly assessment on its previous 6 months’ data to determine if it qualifies as a Systematic Internaliser (SI). Where an IF is classified as a SI, it will be obliged to meet the pre- and post-trade transparency requirements. Read more.
We all know that meeting all the requisite trade/transaction reporting obligations for EMIR, MiFID II/MiFIR and SFTR can pose a considerable cost to an investment firm. While the regulatory burden is not going to disappear, it can be minimised by outsourcing and choosing the most cost-effective and efficient option for you. Read more.
Pricing packages
How much does it cost?
We charge a combination of an account management fee and a cost per transaction/position. Contact us for a quote, or view our pricing page for more information.
EMIR Reporting
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Field mapping logic
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Portal access
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Product/symbols setup
EMIR Refit
video
UK Refit: Top 6 changes you need to know
UK EMIR Refit went live on 30 September 2024, and we’ve created a video and article highlighting the top 6 changes you need to know to stay ahead. Ensure that your firm is prepared for these major regulatory changes.
EMIR Refit FAQs
EMIR first came into effect in 2012 with a reporting commencement in 2014. Since then there have been a number of updates to the regime, often with similar names. This feels quite confusing so we have summarised the history of the regime changes.
This depended on whether you have reporting obligations in the European Union (EU) under ESMA, or in the United Kingdom (UK) under the FCA.
EMIR Refit in the UK commenced on Monday, 30 September 2024.
EMIR Refit in the EU commenced on Monday, 29 April 2024.
A move from CSV submissions to XML only
One of the global financial regulators’ goals of introducing ISO 20022 XML is to improve reporting quality. Where each trade repository has had its own unique submission format to date, it has caused difficulties in data sharing and matching between repositories.
By unifying the submission format to the ISO 20022 XML schema, this should eliminate the risk of discrepancies between reporting parties and repositories due to inconsistent data and allow generation of cleaner data with less variation of file formats for matching among repositories.
In total there are 203 fields in the EU Refit specification. This is a significant increase from the number of fields that are currently required to be reported. TRAction is contacting our current clients to advise them what additional information needs to be provided and how to send it to us. For new clients, we have an updated file specification ready to be provided so you can start preparing to transition to TRAction.
Yes, the most recent revision of the European Market Infrastructure Regulation, which governs the EU’s derivatives market, is known as
EMIR 3. The updated regulation seeks to improve the effectiveness and resilience of the EU clearing system while addressing some of the risks and problems brought on Brexit and the energy crisis. It will likely have little to no impact on reporting to a Trade Repository.
REFIT – “Making EU Law Simpler, Less Costly and Future Proof”
- The European Commission’s Regulatory Fitness and performance programme (REFIT) aims to ensure that EU laws deliver on their objectives at a minimum cost for the benefit of citizens and businesses.
- The Commission presents every year an overview of its efforts for simplification and burden reduction in the Annual Burden Survey and monitors regularly the programme’s progress in the REFIT scoreboard. A high-level group – the Fit for Future Platform – advises the Commission on how to achieve the REFIT objectives and modernise EU laws.
- Basically it’s like Microsoft Windows updates, except a little harder to apply than just downloading, waiting 15 minutes and then restarting your computer.
- In November 2017, we got the first EMIR Refit which added some collateral fields and country of counterparty.
- No one paid much notice as MiFID II was going live 2 months later.
- Refit is broader than just EMIR and is applied to other regulations. It was launched in 2012.
UK Refit - TRAction's Suggested Implementation Timeline
EU Refit Goes Live
The new EU Refit rules began on 29 April 2024.
Source Underlying Data for Additional Fields
Be Able to Produce an XML Output File
Decide Whether Reports Will Be Created Manually or Automatically
Integrate New Data With Existing Fields in New XML Format
Choose a Trade Repository or Agent
Unique Product Identifier (UPI)
The UPI service from ANNA-DSB went live in early 2024. TRAction is working closely with the service for its clients where they do not already have the UPI for their transactions.
Be Able to Ingest and Read Daily Confirmation Files in XML
Delegated Reporting
Perform Test XML Reports
Make sure you have started conducting testing in the UAT of your trade repository.
UK Refit Goes Live
The new UK Refit rules began on 30 September 2024.
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