TRAction's Reporting Recap: July 2024
Stay ahead by exploring new regulatory reporting insights in TRAction’s Reporting Recap.
This month’s edition features:
New Video: TRAction's Trade Reporting Process
Are you curious about what the trade reporting process looks like when you use TRAction's services?
Watch our latest video for an explanation of TRAction's trade reporting process! In this video we answer key questions and share insights on how TRAction simplifies the trade reporting process for our clients.
Is a Zero Notional Position Reportable?
Is a zero notional position reportable under EMIR Refit?
The concept of ‘notional amount’ is key in determining the obligations associated with a derivative and is utilised as one of the ways in measuring and calculating exposures, volumes of trading and the derivative market’s size. Some regulators use the notional amount as a threshold in deciding how and if certain requirements come into effect.
TRAction looks at the reportability of a zero notional position under UK EMIR Refit and also for the EU regime, and the advantages and disadvantages of reporting.
Is reporting at 'position level' allowed for all EMIR derivatives?
Differences between trade level reporting vs position level reporting are important to note as part of transaction reporting. Position level reporting essentially targets aggregated data to show overall exposure across the counterparties concerned.
Under EMIR, reporting at position level for all derivatives is not permissible and can only be done for 3 types of derivatives:
Although both the EU and UK regimes are in agreement on position level reporting, there are slight nuances between the approaches taken by the FCA and ESMA and which we discuss below.
Position vs Transaction Reporting - After Refit you need to be in sync with your counterparty
Under EMIR Refit, counterparties are to do transaction level reporting and will only be permitted to report at position level where both counterparties agree to do so.
The EMIR Regulation requires reporting of all details of a derivative contract as well as any modification or termination of the contract. Under EMIR, reporting at position level is only permissible for the below 3 types of derivatives:
TRAction discusses more details about transaction and position level reporting under the EU (ESMA) and UK (FCA) guidelines in our recent blog post below:
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MiFID III and MiFIR 2 (amendments to MiFID II and MiFIR)
There have been some major amendments to the Markets in Financial Instruments Directive (MiFID) that are expected to come into force in late 2025, or early 2026.
Some of the changes are:
TRAction has examined the 8 most crucial changes under MiFID III and MIFIR 2, and some of the ways you can prepare for it.
New video: UK Refit - Top 6 changes you need to know
UK EMIR Refit goes live on 30 September 2024, with the FCA introducing several significant changes to reporting requirements, broadly similar to those implemented by ESMA earlier this year.
Make sure your firm is prepared to implement these changes by watching our 'Top 6 Changes You Need to Know' video
New video: ASIC Rewrite - Top 8 changes you need to implement
ASIC's new OTC derivative trade reporting rules commence on 21 October 2024. These are major changes to the rule which make staying compliant with these obligations significantly more difficult.
Learn more about these important changes that your firm needs to implement, with the key points covered in TRAction's video.
New video: MAS Rewrite - Final rules for OTC derivatives
MAS have released their updated guidelines for regulatory reporting and have outlined the final rules that will come into effect on Monday, 21 October 2024. These changes are similar to those made by other regulators such as ESMA, FCA, CFTC and ASIC.
Watch TRAction's helpful video that has covers the main changes under MAS Rewrite and read more about these on our website.
Missed one of our informative field summaries for ASIC Rewrite?
Don't worry! You can find them all on our website in our Reporting Fields Hub.
Stay informed and updated about the upcoming changes to your reporting requirements, commencing October 21st 2024.
Access them at any time on our website below, and don't hesitate to contact us for any further assistance:
EMIR Refit comes into effect in the UK on September 30th
TRAction has been highlighted in FinanceFeeds’ article, discussing upcoming changes to reporting regulations following UK EMIR Refit, effective in September this year.