UPDATED – 19 February 2019
As we get closer to the withdrawal date, we have seen a flurry of statements from ESMA and the FCA on the impact of a hard Brexit on MiFIR and EMIR reporting obligations. As a result, we have revised our Brexit White Paper to take account of the recent statements.
One of the most interesting developments was the statement from ESMA that EMIR trades and positions submitted to an EU trade repository by a UK counterparty would not need to be modified or updated post 29 March. The onus will be on the trade repositories to terminate these reports in the event of a hard Brexit. Before UK firms start celebrating, it should also be noted that these trades and positions could be ported to the newly established UK trade repositories and it is expected that firms will have to update and modify these trades as per usual. In effect, it is quite a seamless solution for firms and regulators alike.
As we’ve all discovered, Brexit is a fantastic opportunity to upset friends and family by sharing our expert views on the subject.
Unfortunately, it will also have a profound effect on MiFIR transaction reporting and EMIR trade reporting.
If there weren’t enough things to consider, we need to assess the impact it could have on branches, delegated reporting, outstanding trades, reportable instruments and personal data standards, just to name a few.
Whilst it is tempting to bury our heads and wait for it all to blow over, the sad fact is that the impact on reporting could be brutal.
We recommend that you put on your tin hats, batten down the hatches and prepare for a bumpy ride. What better way to start than reading our revised White Paper on the potential impact Brexit could have on your reporting?