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’.
|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
|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
|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||4.1 Methods for reporting||Ensuring data quality by counterparties
New requirement: cptys to notify their NCA of errors, omissions and late reports
|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
|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.
|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)
|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)
|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)
|11||4.3 Reporting Logic||Reporting at position level
Both counterparties must agree to position level reporting
|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
|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|