The mammoth task of reporting OTC derivative transactions has
moved a huge step closer with the authorisation of four trade
repositories (TRs) by the European Securities and Markets Authority
(ESMA). This is the final leg of a very long process. What started
out as a political commitment back in September 2009 will become a
reality for European counterparties, including corporates, on 12
February 2014 – now confirmed as the date on which reporting
obligations under the European Market and Infrastructure Regulation
(EMIR) will commence.
At the same time, firms hoping for some reprieve from the
commencement of reporting exchange- traded derivatives (ETDs) have
been disappointed. The EU Commission has once again flexed its
muscles over ESMA and refused its request to extend the reporting
start date for these products. ESMA had argued that the reporting
fields in EMIR, originally designed for OTC derivatives, gave rise
to implementation challenges and warranted a delay.
