How will the new EMIR REFIT reporting requirements impact the EU and the UK markets?

In a recent article published by FinTech Global, George Markides, Senior Manager of the Compliance Support Department at MAP FinTech, highlights key aspects of the new EMIR REFIT reporting regime and how it will impact the EU and UK markets. The rules come into effect on April 29, 2024, in Europe and September 30, 2024, in the UK.

According to Markides, the regime introduces several novelties that will impact the way reporting counterparties operate and exchange information with each other, inviting increased scrutiny from regulators.

Notably, Markides writes that one of the most significant changes is the additional data points and values reported that will be subject to reconciliation for dual-sided reports submitted by counterparties in the EEA or UK. The reconciliation takes place at the trade repository (TR) level with results shared with reporting entities and regulators. Crucially, valuations of derivative contracts under EMIR will also be subject to reconciliation.

Markides emphasises the establishment of the Unique Product Identifier (UPI), a concept introduced in EMIR V1 but now required from day one of the new reporting regime. UPI serves as an identifier for non-listed OTC derivatives and is issued by ANNA Derivatives Services Bureau (ANNA-DSB), though new issuances will incur fees.

Additionally, EMIR REFIT introduces more detailed outgoing messages from TRs, sharing data such as number of submissions, number of rejections, outstanding positions, and trades with outdated or no valuations or collateral information, reconciliation status, or abnormal values reported. These reports aid reporting entities in correcting their submissions and provide regulators with a more immediate and comprehensive view of compliance with the reporting regime.

In conclusion, Markides stresses that these changes necessitate reporting counterparties to enhance oversight and monitoring to minimise potential lapses in compliance.

Read the full article here.

MAP FinTech can fully assist any firm under EMIR Reporting to seamlessly adapt to the evolving reporting requirements brought on by EMIR REFIT.  Contact our team of experts and learn how you can benefit from our innovative and comprehensive regulatory reporting solutions.

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