EMIR: New ITS/RTS for ESMA consultation

March 27, 2020

Consultation period until 19.06.20.

Final report expected Q4 2020.

Go live – 18 months later (See 346)

 

ESMA has written a proposal to update the EMIR RTS and ITS for EMIR reporting to the Trade Repositories.

The intention of the update is to;

  • Align with the global guidance on OTC derivatives data elements (CPMI and IOSCO)
  • Suggest arrangements for allocation of responsibility for reporting between counterparties
  • Suggest arrangements to ensure the correct reporting
  • Provide a statement of reporting of lifecycle events
  • Provide a statement of reporting at position level should be performed.
  • Update product specific reporting requirements

Please find below a full table of changes proposed by ESMA.

They are accepting comments from all market participants before 19.06.20. All contributions should be submitted online at www.esma.europa.eu under the heading ‘Your input – Consultations’.

Ref Section Proposal Cross Reference
1 4.1 Methods for reporting Provisions of details of OTC derivative contracts by NFC to FC
FC are legally liable for the reporting of OTC derivative contracts on behalf on the NFC-
NFC- should provide to the FC the data needed for reporting
4.1.1
2 4.1 Methods for reporting Reporting where an NFC decides to report OTC itself
NFC- can choose to report OTC transactions.
NFC- should inform FC in writing of their decision to perform the reporting of the data of the OTC derivative contracts
4.1.2
3 4.1 Methods for reporting Delegation of reporting
“The current approach to delegation of reporting has shown a series of shortcomings.”
Some not aware that they cannot transfer their responsibility for the reporting.
Some reporting firms not capable to monitor their reporting.
Problems where reporting and delegating entity in different jurisdiction
Report submitting entity ID (9) to become mandatory –  should be populated whenever reporting delegated
4.1.3
4 4.1 Methods for reporting Ensuring data quality by counterparties
New requirement: cptys to notify their NCA of errors, omissions and late reports
4.1.4
5 4.2 Data Standards TRs only to accept ISO 20022 xml as inbound format 4.2.1
6 4.2 Data Standards Unique Trade Identifier (UTI)
Suggestion to update requirement in line with CPMI-IOSCO guidance
4.2.2
7 4.2 Data Standards Unique Product Identifier (UPI)
The international work on the development of an ISO standard for the UPI is currently ongoing – global implementation of the UPI by Q3 2022
ESMA to include in the draft technical standards for when UPI live.
4.2.3
8 4.2 Data Standards Use of Legal Entity Identifiers (LEIs)
ESMA Q&A TR 10 to be added to ITS (Re updating of LEIs)
4.2.4
9 4.2 Data Standards Inclusion of CDEs
ESMA are proposing to update EMIR field level reporting logic in line with the “Technical Guidance on Harmonisation of critical OTC derivatives data elements (other than UTI and UPI)” (CMPI, April 2018)
4.2.5
10 4.3 Reporting Logic Reporting of lifecycle events
New field: “Event type” – dedicated to reporting the type of business event (trade, step-in, PTRR, early termination, clearing, exercise, allocation, credit event, inclusion in position, misreporting)
Current field: “Action type” – removed value “Compression” and added new values: , “Collateral Update”, “Revive” (allows UTIs to be reused after termination)
4.3.1
11 4.3 Reporting Logic Reporting at position level
Both counterparties must agree to position level reporting
4.3.2
12 4.4 Update to report contents New table added to RTS annex for collateral – Table 3 (Similar to SFTR) 185
13 4.4 Update to report contents 74 new data fields (From CDE guidance – see 4.2.6) 189
14 4.4 Update to report contents Removal of field “Beneficiary Id” 227
15 4.4 Update to report contents Removal of “Trading Capacity” 228
16 4.4 Update to report contents New approach to determination of buyer/seller 229
17 4.4 Update to report contents Settlement date to be updated for final settlement date rather than settlement of underlying 242
18 4.4 Update to report contents Deliverable currency to be renamed settlement currency 245
19 4.4 Update to report contents Update to requirements on payment frequencies 254
20 4.4 Update to report contents Update to collateralisation definition: “in order to capture the collateralisation by both counterparties to the transaction”
Increasing from 4 to 9 potential values
265
21 4.4 Update to report contents New fields to measure haircuts on collateral 269
22 4.4 Update to report contents New fields required for collateral rating and trigger 270
23 4.4 Update to report contents New price fields; Price Schedule, Spread, Strike Price Currency, Option Premium 277
24 4.4 Update to report contents Remove Quantity and Price Multiplier and add “Total notional quantity” 283
25 4.4 Update to report contents New field “Delta” for reporting an option’s delta value – required to be updated with valuation updates daily 285
26 4.4 Update to report contents “Up front payment” removed and replaced with “Other payment amount” and require additional info; currency, date, payer, receiver 303
27 4.4 Update to report contents 7 new fields for package transactions 308
28 4.4 Update to report contents Prior UTI for post trade events which cancel and then re-report a transaction 310
29 4.4 Update to report contents “PTTR” added to link components of a compressed position 313
30 4.4 Update to report contents “Position UTI” added to link trades to positions 322
31 4.4 Update to report contents 5 new fields added for basket products 326
32 4.4 Update to report contents Wholesale energy market transaction reports requirements updated to align with ACER 327
33 4.5 Reporting of outstanding derivatives All open transactions on report start date need to be updated in line with this guidance 341
34 5.3 Reconciliation of data Inter TR Rec process being defined – counterparties given daily feedback on reconciliation results 360-390