Swiss Derivatives Regulator FINMA Recognises UK Derivative Regulations Ahead of Brexit

In a move aimed at safeguarding regulatory compliance for Swiss derivative market participants trading under foreign law, the Swiss regulator, FINMA has provisionally recognised the derivative regulations of the UK with respect to reporting, clearing and risk mitigation obligations.

At present, the UK falls under the territorial scope of EMIR and the clearing obligation (Art. 14 EMIR transposition act), reporting obligation (Art. 19 EMIR transposition act) and risk mitigation obligation (Art. 21 EMIR transposition act) offer equivalence with the relevant Swiss legislation (cf. Art. 97 (1) FMIA; Art. 104 (1) FMIA; Art. 107 (1) FMIA). The post-Brexit recognition of equivalence will enter into force when the EMIR transposition act passes into UK law.

This announcement was made in FINMA Guidance 01/2019 BREXIT: Recognition of UK derivatives regulations. It should mean that firms subject to Swiss obligations to report can continue to use the UK’s ‘Recognition of Equivalence’ in order to report via a UK trade repository using a continuation of the ‘EMIR’ format.

We are currently developing regulatory testing to meet quality assurance requirements for Swiss FINMA Finfrag and Sesta derivative and securities transaction reporting obligations. Please get in touch to discuss your requirements.  

We’ve also published a Brexit White Paper which looks at the implications for reporting. Download it here to find out what you need to do to get ready by 29 March.