EMIR Regulation* that came into force on 16 August 2012 introduces new requirements to reduce the risks associated with the derivates market and thus improve transparency. In this regard, it provides, inter alia, for a reporting obligation of all derivates to a trade repository.

The European Securities and Markets Authority (ESMA) approved the registration of six trade repositories so far, and according to article 5 of the Commission Implementing Regulation no 1247/2012, the reporting for all asset classes underlying derivatives (such as commodities, credit, foreign exchange and equity interest rates) shall start 90 days after the effective date of first registration(s), i.e. on 12 February 2014.

Thus, all financial and non-financial counterparties being a party to any derivate contract (including OTC derivate contracts and exchange-traded contracts) will be required to ensure that the details of these contracts as well as any modification or termination thereof are reported to a registered trade repository.

The reporting obligation from 12 February 2014 applies to new derivative contracts as well as to derivate contracts which were entered into on or after 16 August 2012 and remain outstanding on 12 February 2014 (derivative contracts entered into prior to 16 August 2012 as well as derivative contracts which are not outstanding on 12 February 2014 benefit from extended reporting deadlines).

According to article 9 of EMIR  Regulation, the conclusion, modification or termination of any derivative contract from 12 February 2014 shall be subject to a reporting no later than the working day after such event.

The responsibility to report applies to both counterparties, but they may arrange for one of them to report on behalf of both counterparties or can delegate this obligation to a third party.