03.03.2020

Best Practices For EMIR Reporting Published

The International Swaps and Derivatives Association, Inc. (ISDA), the European Fund and Asset Management Association (EFAMA), the European Venues and Intermediaries Association (EVIA), the Futures Industry Association (FIA) and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) have jointly published a set of best practices for derivatives trade reporting under the European Market Infrastructure Regulation (EMIR).

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. The best practices are available to all market participants to access and implement.

Mandatory trade reporting under EMIR came into force in 2014, requiring all covered derivatives to be reported to trade repositories separately by both parties. However, differences in how each counterparty completes the data fields can lead to matching errors on individual trades, placing a compliance burden on industry participants and resulting in an unclear picture of trading activity and risk. In February 2019, the European Securities and Markets Authority estimated the matching rate to be just 40%.

The EMIR Reporting Best Practices aims to facilitate greater standardization in how firms complete certain data fields when reporting under EMIR. The document sets out best practice standards for those reporting fields that are most commonly mismatched, based on feedback from trade repositories, but other fields may be added over time if required.

The EMIR Reporting Best Practices are available here.

Source: ISDA

Related articles

  1. EFAMA joined French and Dutch authorities in calling for European regulation.

  2. The regulator wants to harmonize reporting requirements and ensure data quality.

  3. From The Markets

    CME To Launch Ether Futures

    Ether futures will join CME Group's bitcoin futures and options.

  4. The exchange has licensed CoinRoutes' market data.

  5. Institutional investors and wealth managers are challenged by the depth and breadth of available data.