What is UK EMIR (also known as UKMIR)?

Have you heard UK EMIR?

UK EMIR (also known as UKMIR) is the UK version of EMIR.

The European Union (Withdrawal) Act 2018 (EUWA) enables the EMIR to be converted into UK law. To make changes to onshore EMIR at the end of the transition period, 4 statutory instruments were introduced, including The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and TransitionalProvision) (EU Exit) Regulations 2018.

What’s different in UK EMIR?

UK EMIR will be essentially the same as EMIR with slight tweaks at least in the near term after Brexit. We envisage no substantial difference in the UK EMIR and EMIR instrument reportability for now.

However, here are 2 examples of what will be different between the UK EMIR and EMIR regimes:

FCA will be the counterpart of ESMA

In terms of trade reporting, the UK Financial Conduct Authority (FCA) will take over European Securities and Market Authority (ESMA)’s functions and supervisory roles in the UK to govern the reporting entities that are obliged to report to a UK Trade Repository (TR).

Amendment and revocation of the current EMIR regulations

  • Legal terms amended with reference to the UK legislation

Many of the EMIR terms contain references to other EU legislation. Under UK EMIR, these terms will be customised to reference other comparable UK legislation. 

  • Revocation of some current regulations

Upon Brexit, certain regulations won’t be applicable anymore and need to be revoked under UK EMIR. For example, ‘College’ under Article 18 of EMIR will be omitted from UK EMIR. The term refers to the groups of EU regulators that supervise the central counterparty clearing houses in the EU before Brexit whereas the Bank of England will be the competent authority responsible for such role after Brexit.

What trade repositories can I use?

Following a no-deal Brexit, UK investment firms will need to report to a TR registered by the FCA. These differ for SFTR and EMIR.

There might also be a dual reporting obligation under EMIR. Please refer to our other article for detailed information and different scenarios.

Delegated reporting is common for EMIR, what should I consider?

  • If you are a UK firm and want to delegate your reporting to an EU firm (counterparty), you will need to check with them if they are willing to report to a UK TR for you.
  • If you are an EU firm and want to delegate your reporting to a UK firm (counterparty), you will need to check with them if they are willing to report to an EU TR for you.

What happens to historical EMIR trade reports?

Data transfer across TRs between EU and the UK will be required if you need to change TR. You need to ensure you or your reporting delegate have the correct arrangement with relevant TRs and enable all relevant post-Brexit reporting. Both your open and closed positions will then be held in the new TR after a no-deal Brexit.

Recent Articles:

EMIR

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).

Repo Agreements
About TRAction

How Are Repurchase Agreements Reported for SFTR?

A repurchase agreement (repo) is a form of short-term secured loan where one party sells securities to another and agrees to repurchase those securities later at a higher price with the securities serving as collateral for the borrower.

EMIR

Refit, Rewrite, RTS, EMIR II; Navigating the Maze of EMIR Version Names

Regulatory reporting is hard enough without the confusion over which version of each regime is the latest. EMIR has gone through a number of variations since it was first implemented in 2012. We thought it would be a great time to outline what the EMIR version names relate to and where we are currently at as we anticipate further changes to the regime.

ASIC

Reminder: Daylight Saving Time Ends this Weekend for New York

Are you reporting trades by New York (NY) time or following NY close of business? If so, it is important to check your trades/transactions are still reported at the correct time now that daylight saving time (DST) has started in the US (13 March 2022).