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What is reportable under EMIR?

What is reportable under EMIR?

EMIR mandates reporting of all derivatives to Trade Repositories (TRs). TRs centrally collect and maintain the records of all derivative contracts. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.

What trades should be reported under EMIR?

What should be reported under EMIR? EMIR requires reporting of the transaction details for both types of derivatives trades – exchange traded derivatives (ETD) and OTC derivatives.

What is the difference between ESMA and EMIR?

The European Securities and Markets Authority (ESMA) applies mandatory clearing obligations for specific OTC derivative contracts if a contract has been assigned a central counterparty under EMIR. EMIR granted a temporary exemption from these guidelines to pension funds until August 2017.

Is FX spot a derivative?

For these FX forwards there is not a common definition and, therefore, they are not clearly identified as derivatives across the Union. Other differences arise because of the commercial nature of the transaction.

Why is FX spot 2 days?

A spot FX contract stipulates that the delivery of the underlying currencies occur promptly (usually 2 days) following the settlement date. The main difference between the contracts is when the trading price is determined and when the physical exchange of the currency pair occurs.

What is an FX outright?

Currency forward outright transaction (FX forward outright) is a transaction between you and the bank to purchase one currency against selling another currency at a fixed price for delivery on an agreed date in the future.

Are warrants MiFID reportable?

Whatever their deemed complexity for other MiFID purposes, we do not believe that warrants and convertible securities are derivatives for the purposes of MiFID or EMIR. It should be clearly stated that they are not reportable for the purposes of EMIR.

What do forex brokers have to report under Emir?

In understanding what has to be reported under EMIR, the guidelines focus on OTC derivatives. As such, FX swaps, forwards and options are within the reporting framework. Not included are spot FX trades that settle within two days and include a delivery of funds between counterparties. But what about your typical retail forex trade?

Is it normal to report two FX swaps separately?

The newest addition however, TR Question 49 – Reporting of FX swaps under EMIR, has left us quite baffled and asking more questions than we had before. Since reporting go-live it has been market practice to report the two legs of an FX swap separately.

When did the EU introduce EMIR reporting of OTC derivative trades?

When the EU introduced EMIR reporting of OTC derivative trades in 2014, one of the questions many had was the status of spot FX trades. For online forex brokers, spot FX is the foundation of their business with many of them reporting over 90% of their volumes in FX and only smaller activity in CFDs.

What are the best practices for EMIR reporting?

Data, EMIR, Reporting March 3, 2020 The EMIR Reporting Best Practices cover 87 data points across 61 reporting fields, including both over-the-counter and exchange-traded derivatives, and were developed to improve the accuracy and efficiency of trade reporting and to reduce compliance costs.