The Financial Conduct Authority and Bank of England have launched a joint consultation on changes to reporting requirements, procedures for data quality and registration of trade repositories under UK EMIR (European Market Infrastructure Regulation). This would be delivered by amending the relevant on-shored Technical Standards and introducing new rules for trade repositories (TRs).
The proposals aim to align the UK derivatives reporting framework with international guidance from the Committee on Payments and Market Infrastructures and International Organization of Securities Commissions (CPMI-IOSCO) to ensure a more globally consistent data set. This will enable authorities to better monitor for systemic and financial stability risk.
There’s also proposed measures for mandatory delegated reporting requirements, counterparty notifications and reconciliations processes and the use of XML schemas and global identifiers. These proposals aim to provide clarity to counterparties and TRs, including where there are discrepancies on how certain data fields are reported. The FCA is also proposing new rules for TRs on the registration and reconciliation processes, to streamline the process for registration.
The proposals are for: counterparties in scope of the reporting requirements under UK EMIR; TRs registered, or recognized, under UK EMIR; third party service providers who offer reporting services to counterparties subject to UK reporting under EMIR; and may also be of interest to trade associations, law firms and consultancy firms as well as authorities in other G20 jurisdictions who are implementing, or considering, similar changes to their derivatives reporting regimes.