The European Securities and Markets Authority (ESMA) wrote to the European Commission in August proposing a 12-month delay to the start-date for the reporting of exchange-traded derivatives to Trade Repositories (TRs) under the European Market Infrastructure Regulation (EMIR), necessitating a change to the final Implementing Technical Standard (1247/2012) on the format and frequency of reporting to trade repositories (ESMA had set out in draft form a proposed amended version of the ITS in its Letter to the Commission). However, the Commission has now confirmed that it intends not to endorse ESMA's draft ITS (since it considers that ESMA's concerns over the need to provide guidelines and recommendations and ensure the consistent reporting under both EMIR and the Markets in Financial Instruments Directive - thus necessitating a delay - are not justified). The Commission's rejection of ESMA's request means that reporting under EMIR for all derivative asset classes - commodity, credit, foreign exchange, equity, interest-rate and others - irrespective of whether the contracts are traded on- or off-exchange - commences in early 2014 and not 2015 as ESMA had hoped. To help facilitate the trade reporting provisions of EMIR, ESMA has also announced that it has approved the registrations of the first four Trade Repositories (TRs) under EMIR. UK-based DTCC Derivatives Repository Ltd and UnaVista Ltd, Poland-based Krajowy Depozyt Papierów Wartosciowych S.A., and Luxembourg-based Regis-TR S.A. have all been approved as from 14 November 2013. TRs play an important role under EMIR, centrally collecting and maintaining the records of derivatives contracts reported to them, and the approved TRs can be used by counterparties to derivatives trades to fulfil their trade reporting obligations under EMIR. The registrations took effect on 14 November 2013, with the reporting obligation due to kick in 90 days later, from 12 February 2014. ESMA has written a further letter to the Commission reiterating the benefits of postponing the reporting start-date for exchange-traded derivatives, but it is not clear at this stage whether the Commission intends to engage further in this debate.

Useful links

ESMA Letter to European Commission (6 August 2013)
ESMA Letter to Commission (14 November 2013)
Commission confirmation not to endorse ESMA request
ESMA Announcement re Trade Repositories