New EMIR reporting technical standards to apply from April 2024

On 7 October 2022, Delegated Acts on reporting, data quality, data access and registration of trade repositories under the European Markets Infrastructure Regulation (EMIR) have been published in the Official Journal of the European Union.

Delegated Acts introduce important amendments to EMIR reporting standards and templates to improve the clarity of the reporting framework and ensure coherence with internationally agreed standards – notably by introducing a common XML template in accordance with the ISO 20022 methodology.

The global legal entity identifier (LEI) system is now fully implemented. Therefore, each counterparty to a derivative or entity responsible for reporting should only use LEI to identify a legal entity in a report.

In accordance with globally agreed standards, counterparties shall report derivatives using both Unique Product Identifier (UPI) and Unique Trade Identifier (UTI).

Among other changes, specific rules have been introduced to determine the direction of the derivative as well as the reporting of collateralisation for a given derivative.

Entities responsible for reporting should establish specific arrangements to notify competent authorities of relevant errors and omission in reporting.

Financial counterparties that are reporting the details of over-the-counter (OTC) derivative contracts on behalf of non-financial counterparties should also have dedicated arrangements as prescribed by the new standards.

Importantly, the new rules require counterparties to report/update the details of all outstanding derivatives in accordance with the currently applicable requirements.

To enable counterparties and trade repositories to take all necessary action to adapt to the new requirements, the date of application of the Delegated Acts is deferred by 18 months; hence, new reporting requirements shall apply from 29 April 2024.

How Deloitte can help:

Deloitte’s RegWatch will help you stay tuned to regulatory updates and anticipate regulatory changes impacting your business and organization.

• Deloitte’s advisory and consulting services can help you:
  assess the impact of the new reporting standards on your business;
• understand the requirements and benchmark interpretations on specific fields;
• implement the changes at your side if you wish to own the process;
• take on the burden of daily reporting through our proprietary solution as a service;
• provide you with data analytics through our advanced dashboarding services regarding data quality, reporting quality, reconciliation.