Under the Refit regulations which commenced on 29 April 2024 in the EU, a 180 day (6 month) transition period was provided to allow for reporting entities to update their non-compliant trades entered into before the Implementation Date.
This means the EMIR Refit old format (for open trades) window closes on 26 October 2024 (for EU) and all trades that sit under the old formatting parameters need to be updated to conform with the new reporting requirements.
EMIR Refit (UK) also went live on 30 September 2024, meaning the 6 month transitional period to update impacted trades lasts until 29 March 2025.
As of the 29 April 2024, ESMA accepted trades that were entered into prior to this date with the expiry being after the effective date even if they did not meet the new standards required post Implementation Date.
Examples of a trade still open in the old format
Here’s some examples of when you may need to update your trades:
- You may have entered into a reportable trade such as a 12 month dated FX forward, on 20 April 2024 and its maturity date is on 20 April 2025. For this particular trade, however, although you may not have had a UPI at the time and/or a UTI was made up (not aligning with the UTI standards).
- For previously reported Power Purchase Agreements (PPAs) that are outstanding for over 6 months after the Implementation Date, you will need to re-report these in the new required format. For more niche details on PPAs and the data requiring updating for reporting, please see our article here.
Reportable trades as described above including PPAs, will need to be converted into the EMIR Refit format and re-submitted if they are entered into prior to:
– 26 April 2024, but outstanding until after 29 October 2024 (for EU); and
– 30 September 2024, but outstanding until after 29 March 2025 (for UK).
Other things to note
- Trades should be updated, even if there have been reports of daily collateral and valuation updates during the transition period, but no modification or correction concerning the trade has occurred.
- For terminated or matured trades during the transition period, reports do not need to be submitted with ‘Update’ as the event type if no reportable changes occurred to the trade. i.e. no updating or re-reporting is required for these.
- All outstanding derivatives are to be updated (trade and position level reporting).
What do I have to do?
If you are a:
- Ongoing client of TRAction – we will perform the updates required on your behalf. If we need additional data from you such as the UTIs, we will reach out to you shortly.
- Former one-off client of TRAction – please reach out to us so we can obtain your instructions to update the impacted trades which we previously reported on your behalf to be compliant.
- Not a client of TRAction and undertaking the trade reporting yourself or through another firm, please follow the below steps:
- First ensure that your current trades entered into post-Implementation Date are compliant with the new EMIR Refit requirements. If there are any breaches, these need to be reported to the relevant regulators.
- Consider and identify the trades entered into pre-Implementation Date that need to be updated along with the details that need to be corrected or revised.
- Submit reports: By 29 October 2024 (for EU) or 29 March 2025 (for UK), for identified impacted trades, you should submit a report such that ‘Update’ is populated for Event Type (where a report has not already been submitted with ‘Modify’ or ‘Correct’ as the action type to correct trade details).
How can TRAction assist?
If you need assistance with updating your affected trades, please contact TRAction and instruct us to update your pre-Implementation Dated reportable trades and re-submit these updates to the relevant trade repository.
For new clients, TRAction will update all reportable trades so they are compliant with EMIR with no extra charge as this is included in our service arrangement. For existing clients, and in particular, those reporting entities that may have only had one-off trades for example a CFD with a 7 year expiry or PPAs, we will be happy to assist in performing the updates to pre-EMIR Refit impacted trades.
For more information on EMIR Refit updates, please see our website here. If you have any questions please get in touch with us.
