Thu. Aug 22nd, 2019

Planet Compliance

Innovation & Regulation in Finance

ESMA advises on trade reporting under EMIR

2 min read

The European Securities and Markets Authority (ESMA) has issued today an update of its Q&A on practical questions regarding the European Markets Infrastructure Regulation (EMIR).

In its latest update to the EMIR Q&A, ESMA clarified that when a derivative contract is cleared by an entity which is not a CCP within the meaning of EMIR (e.g. a clearing house), the clearing house should not be identified in the field “CCP ID”. The field “CCP ID” should only be populated with the identifier of a CCP, i.e. a central counter- party which meets the definition of Article 2(1) of EMIR.

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ESMA also advised how counterparties should identify each other if the transaction is executed in an anonymised market and cleared by a clearing house. The counterparty executing the transaction should request the trading venue or the clearing house that matches the counterparties to disclose before the reporting deadline the identity of the other counterparty.

The purpose of this document is to promote common supervisory approaches and practices in the application of EMIR. It provides responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of EMIR. The content of this document is aimed at competent authorities under the Regulation to ensure that in their supervisory activities their actions are converging along the lines of the responses adopted by ESMA. It should also help investors and other market participants by providing clarity on the requirements under EMIR.

The ESMA statement and the updated Q&A can be found here.

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