Brexit: EMIR Reporting - Getting the Right Repository

Author

Matt Chapman

Publish Date

Type

Compliance Alert

Topics

  • Compliance
  • Brexit
  • Trade & Transaction
  • FCA

It's seven months on from the UK’s departure from the European Union and the introduction of the UK EMIR regime, but there is still work to be done for firms who have not yet implemented arrangements to ensure reports are submitted to the correct trade repository (“TR”).

Prior to Brexit, UK MiFID firms acting as agent (and UK AIFMs and ManCos in respect of any MiFID business) and reporting on behalf of their clients needed only to submit reports to an EU TR, and could make use of the NFC- exemption when executing with an EU market counterparty. Following Brexit, however: 

  • Reports for UK clients must be submitted to a UK TR and, where relevant, open contracts and positions which were previously submitted to an EU TR need to have been ported to a UK TR;
  • Reports for EU clients must be submitted to an EU TR and, where relevant, open contracts and positions which were previously submitted to a UK TR need to have been ported to an EU TR; and
  • The NFC- exemption can only be applied where the client and the market counterparty is in the same regulatory jurisdiction (UK/UK or EU/EU).

Similarly, UK AIFMs and ManCos were required to submit reports to an EU TR prior to Brexit, but following Brexit: 

  • Reports for UK funds must be submitted to a UK TR and, where relevant, open contracts and positions which were previously submitted to an EU TR need to have been ported to a UK TR;
  • Reports for EU funds must be submitted to both a UK TR and an EU TR and, where relevant, open contracts and positions need to have been ported to ensure reports are kept at both a UK and EU TR; and
  • Reports for third country funds must be submitted to a UK TR and, where relevant, open contracts and positions which were previously submitted to an EU TR need to have been ported to a UK TR.

Ensuring that reports are being sent to the correct TR (and that there is no over-reporting of NFC- contracts) is an important consideration both for firms who are self-reporting and for those who are delegating their reporting. 

As time passes and firms take on new clients, clients cross over or under the clearing threshold, and managers launch new funds, this is also a consideration that requires ongoing vigilance. 

With data quality also a persistent concern among regulators, ACA can provide regular, field-level assurance in respect of your EMIR reporting, not only to ensure that reports are reaching the correct TR, but also that the data in those reports is complete and accurate. 

For further information, download our guide to Brexit/EMIR Reporting Getting the Right Repository.

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