What is EMIR?

The European Market Infrastructure Regulation (EMIR) is an extensive set of requirements from the European Securities and Markets Authority (ESMA).

The regulation aims to improve transparency and reduce risks in derivatives markets.

Firms trading derivatives (financial and non-financial) must report details of all financial derivatives contracts to ESMA via a trade repository. This includes over-the-counter and exchange-traded derivatives.

Read our latest EMIR trade reporting insights:
Lifting the lid on pairing and matching


Robust testing and controls for full EMIR compliance

Our ReportShield™ quality assurance service provides everything you need to be compliant with EMIR including:

  • Testing of all EMIR open positions at the trade repository
  • Checking and mapping of all client identifiers
  • Advanced reconciliations between a primary trading system and records held at the trade repository
  • Checking that all delegated reporting has been reported accurately and completely
  • Complete governance framework

We can also provide expertise in a range of areas including remediation and selecting a trade repository.

A new reporting landscape

Testing and reconciliations are mandatory under Article 15 of Regulatory Technical Standards (RTS) 22 and the regulator has made it clear that its focus is now firmly on data quality.


Everything you need for MiFID II

Our ReportShield™ quality assurance service is designed to address Article 15’s requirements. It includes:

  • Iterative accuracy testing of MiFID II trades reported to the regulator
  • Advanced reconciliations on each platform/asset class to ensure completeness
  • Implementation of a control/governance framework
  • Client and instrument statdata testing using our reference data testing service
  • Subject matter expert support on programme design and implementation
  • Evaluation of vendor solutions including ARM selection and the required due diligence
  • CPD-accredited training on the new reporting requirements bespoke to your firm

What is DFA?

The Dodd Frank Act (DFA) is aimed at improving transparency and reducing risks in derivative markets. It is a wide-ranging package of obligations on firms based in the US and in other jurisdictions relating to their internal and external business conduct, including reporting.


What do you have to report?

Firms trading derivatives must report details of swaps to the Commodities and Futures Commission (CFTC) via a swap derivatives repository. This includes the primary economic terms and any event that affects the valuations or terms of the contract (Part 45) to allow regulators to monitor systemic risk. There is also an obligation on firms to report in real-time to provide transparency on pricing to the market.

Like EMIR, DFA covers over-the-counter derivatives but unlike EMIR it excludes exchange-traded derivatives.


A full suite of controls for DFA reporting compliance

Our ReportShield™ quality assurance service gives you the ability to demonstrate appropriate control over your reporting obligations. Features include:

  • Accuracy (correctness) testing of all DFA open positions at the trade repository
  • Full governance structure, policy documentation, guidance and training for staff on the reporting obligation
  • Completeness, validity and accuracy of reporting for Parts 43, 45 and 46
  • Cross-regulation testing to ensure consistency with other regimes
  • All client identifiers checked for appropriateness for the regulation and properly mapped
  • Application of an advanced reconciliation between a primary trading system and the records held at the trade repository
  • Validation that firms are classifying their clients and counterparties correctly in terms of US persons and regulatory status ie. swap dealer, non-swap dealer etc…

What is SFTR?

The Securities Financing Transaction Reporting Regulation (SFTR) is an extensive set of requirements from the European Securities and Markets Authority (ESMA). Article 4 – the reporting requirement – is due to go live in early 2020.

The regulation aims to improve transparency and reduce risks in securities financing markets; namely the repo, securities lending, buy-sellback and margin lending (prime brokerage) markets.

Firms trading securities financing products (financial and non-financial) must report details of all securities financing transactions to ESMA via a Trade Repository. This includes includes new trades, lifecycle events, CCP margining and a measure of collateral re-use.


We can help you prepare for SFTR reporting

Led by our SFTR subject matter expert Jonathan Lee, the former head of the ICMA Taskforce on SFTR, our pre go-live services include:

  • Pre go-live data accuracy testing
  • Programme design and implementation
  • Evaluation of the appropriate controls environment
  • Training on reporting requirements
  • Subject matter expert support
  • Evaluation of vendor solutions

Our ReportShield™ quality assurance service is being adapted for SFTR and will include:

  • Testing for correctness of all SFTR transaction reports at the Trade Repository
  • Checking and mapping of all client identifiers, contractual and collateral static data
  • Advanced reconciliations between a primary trading system and records held at the Trade Repository
  • Checking that all delegated reporting has been reported accurately and completely
  • A control framework including a governance framework and suite of policy and guidelines documentation.

Quality assurance for all G20 reporting obligations

Beyond EMIR, MIFID II, Dodd Frank and SFTR, you may also face the challenge of reporting under other regimes such as HKMA, MAS, ASIC and Canadian reporting.

Our quality assurance works for multiple regulatory regimes so you can be sure your reporting is correct no matter what the international regulation.

We are here to help. Contact us to discuss your international reporting challenges. 

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