Esma Updates Derivatives Reporting Guidance

Specifically, Esma is providing an update for how it expects exchange-traded derivatives (ETD) to be reported under European Market Infrastructure Regulation (Emir) and Markets in Financial Instrument Directive (Mifid) mandates.

Emir will require all ETD transactions, regardless of whether they are on or off exchange, to be reported to a trade repository from February 12, 2014. As the conclusion of a contract counts as execution under Mifid, any entity completing an ETD transaction will be covered by the requirements, which will include central counterparty clearing houses (CCPs) clearing the trade, clearing members doing the same, investment firms executing on a venue as a member, and counterparties to contracts that encompass all other bodies. Certain exemptions exist, such as a bracket of non-financial firms.

Other areas covered by the update include segregation and portability questions related to CCPs, backloading as it relates to outstanding position reporting after Emir's entry into force, a table of fields for reporting to trade repositories, position-level reporting, collateral codes, and a host of technical information related to ETD reporting.