NEX Regulatory Reporting combines faster on-boarding, specialist consultancy and support, agile technology and global regulatory end-point connectivity, to ensure clients stay fully compliant with EMIR reporting requirements. We are already among the two largest EMIR reporting service providers, which reflects the trust clients have in our robust solution design, its implementation and ongoing client support.
Health checks and compliance reviews based on ESMA Q&As
Easily implemented reporting and valuation templates by asset class
ESMA RTS Rewrite validations
Standardised integration with common industry platforms
Ad hoc regulatory consultancy, advice and rule interpretation
Named service delivery manager
Workflow enhancements to automate report matching, UTI/UPI generation and delegated reporting
What is EMIR?
European Market Infrastructure Regulation (EMIR) is a wide-ranging package of requirements from the European Securities and Markets Authority (ESMA) designed to improve transparency and reduce risks in derivatives markets. It requires market participants to report details of all derivative contracts (interest rate, FX, credit, equity and commodity) to registered Trade Repositories.
In 2017, ESMA introduced the EMIR RTS Rewrite to make the regulation more proportionate and lower administrative reporting burdens, while ensuring supervisors have enough information and high-quality data to monitor risks, and intervene if necessary.
Transactions that need to be reported
Financial and non-financial firms trading derivatives must report details of all derivatives trades to a Trade Repository (TR) which gives access to European and global regulators on request. This includes details of the trades and any event thereafter that affects the valuation or terms of the trade. EMIR covers over the counter (OTC) and exchange traded derivatives (ETDs):
Both parties to the trade must report to a TR
Transactions, positions (optional), valuations and collateral must be reported on a T+1 basis
What changed with the EMIR RTS Rewrite?
There are 30-40 new fields. Some fields have been removed, some have changed names, and others have new values.
Very few existing EMIR fields remain completely untouched. There is further use of LEIs where BICs, etc. had previously been permitted.
Collateral, initial margin, variation margin reporting has been reworked with additional granularity of values required.
Interest rates reporting has been reworked.
Credit has its own dedicated section, with ten fields added.
For product identification and classification, CFI codes are required for all instruments. Full Aii is also required (not just Exchange Product Codes).
Classification of the main business of non-financial counterparties, not only financial counterparties.
There is a new identifier linking components of complex transactions and trading strategies.
Specific methodology has been introduced for valuation of non-cleared trades: International Financial Reporting Standard 13 Fair Value Measurement.
What has remained unchanged?
No removal of ETD reporting
No removal of NFC reporting
Position reporting continues to remain optional for ETD and ETD-like instruments
Are you compliant with EMIR reporting requirements?
Book a complimentary consultation with one of our regulatory experts to find out.