A recent Financial Conduct Authority (FCA) seminar on EMIR trade reporting has caused a bit of stir within the industry. The issue centres around Article 9 of EMIR and Article 5 of its associated implementing technical standard (ITS), both of which detail the reporting obligation in general, and the reporting start date in particular.
Previously, many in the industry (including the FCA) had assumed that trades executed after EMIR came into force on 16 August 2012 and which were still outstanding on 12 February 2014 (the date on which EMIR trade reporting commences) would benefit from a 90-day grace period before being required to be backloaded into Trade Repositories. Unfortunately, this turned out not to be the case. Rather, it was confirmed by the FCA that these trades would have to be backloaded “immediately” on the reporting start date.
A summary of the position as we understand can be accessed via the link below. It’s unfortunate that clarity on this point was only forthcoming at such a late hour. On the brighter side, the FCA appreciates that there will be teething problems and has indicated that it will adopt a reasonable approach to EMIR trade reporting and the backloading of trades in relation to any firm which can demonstrate a credible remediation plan in this area.
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