On 20 December 2013, ESMA issued an updated Questions & Answers (Q&A) on the implementation of EMIR.
A new Part V: "Reporting to TRs – ETD contracts reporting” has been added to clarify the reporting of exchange-traded derivatives under EMIR. The updated Q&A also clarifies the scope and content of the reporting rules under EMIR and MiFID.
In addition, ESMA has added the following questions and answers:
- OTC question 3 (e): Article 10 of EMIR – calculation of the clearing threshold
- OTC question 12(h): Article 11 of Regulation (EU) 648/2012 – risk mitigation techniques for OTC derivative contracts not cleared by a CCP
- OTC question 14(d) and (e): Article 13 of the RTS on OTC Derivatives–portfolio reconciliation
- OTC question 17: Article 4(1)(b)(ii) of EMIR - frontloading requirement for the clearing obligation
- CCP question 16: Article 38 of EMIR – transparency
- TR question 3(a3): Article 9 of EMIR – reporting of collateral and valuation
- TR question 16: collateral portfolio code
- TR question 17: position level reporting
ESMA has also modified its answer to certain existing questions including:
- OTC question 9: notional amounts
- CCP Question 8(a): Article 39 of EMIR – segregation and portability
- TR question 4(a): reporting of outstanding positions following the entry into force of EMIR (backloading)
- TR question 9(a): Article 9 of EMIR ITS (table of fields) – reporting to TRs
To view a copy of the updated Q&A, please click here.
Recent ISDA publications
Template Trade Reporting Delegation Agreement
From 12 February 2014, EMIR requires all EU counterparties to a derivative contract to report their trades to a trade repository (TR), irrespective of whether these are traded on or off exchange.
On 13 January 2014, ISDA published the ISDA/FOA EMIR Reporting Delegation Agreement, produced jointly with the Futures and Options Association (FOA). The template agreement is designed to assist counterparties to derivatives transactions to avail of the possibility under EMIR for a third party to report details of trades to a TR on their behalf.
Clearing Member Disclosure Document
In November 2013, ISDA published the ISDA/FOA Clearing Member Disclosure Document produced jointly with the FOA. This document facilitates clearing members’ compliance with certain of their obligations under Article 39(7) of EMIR. Article 39(7) requires central counterparties and clearing members to publicly disclose the levels of protection and the costs associated with different levels of segregation that they provide.
The document has been made available to allow clearing members to use it in its current form; however, the document may be subject to change.