What is ESMA and EMIR?

ESMA’s main roles in the post-trading area are implementing regulations on the EU’s markets infrastructure (EMIR) and central securities depositories (CSDR), co-ordinating issues such as settlement discipline and Target2-Securities (T2S), and providing information on the Settlement Finality Directive (SFD).

What is the difference between EMIR and MiFID?

MiFID II and EMIR share the regulatory coverage of the OTC derivatives market. While MiFID II introduces a trade obligation for OTC derivatives as part of its market structure related measures, EMIR addresses the duty for central clearing. In this case, both regulations complement each other.

What instruments are reportable under EMIR?

What should be reported under EMIR?

• Counterparty data: name, domicile, ID of the counterparty (set out in the Annex I, Table 1, Commission Delegated Regulation (EU) No 148/2013 of 19 December 2012);
• Common data: type of contract; maturity; notional value; quantity; settlement date, etc.

What is the purpose of EMIR?

The European Market Infrastructure Regulation (EMIR) is an EU regulation aimed at reducing systemic counterparty and operational risk and thereby prevent future financial system collapses. Its focus is regulation of over-the-counter (OTC) derivatives, central counterparties and trade repositories.

Are FX spot reportable under EMIR?

Implications: ➢ EMIR: fx spot are not subject to EMIR obligations (reporting, clearing, margin, portofolio reconcilation, daily valuation, etc.) ➢ MIFID: fx forwards are considered financial instruments, not fx spot.

How many fields are there in EMIR?

The counterparty data in a report includes 26 fields for data and the common data includes 59 fields of data. These fields include an LEI, or a unique 20 digit alphanumeric code that may be used for eight of the 26 counterparty data fields, and the unique trade identifier, which are generated based on the report’s LEI.

What are MiFID regulations?

The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union.

What is EMIR reporting?

EMIR Reporting. EMIR mandates reporting of all derivatives to Trade Repositories (TRs). TRs centrally collect and maintain the records of all derivative contracts. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.

What is Esma doing about EMIR Refit?

In the meantime, ESMA will commence working on the guidelines on reporting under EMIR REFIT as well as on the technical documentation, including XML schemas and validation rules.

What is the timeline for the implementation of the technical standards?

The draft technical standards have been submitted to the European Commission, and the proposed timeline for implementation of the technical standards by the reporting counterparties and TRs in the Union is 18 months from the date of their publication in the Official Journal.