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With the European Securities and Markets Authority (ESMA) having finally authorised the first trade repositories under the European Market Infrastructure Regulation (EMIR), the race to implement trade reporting is now well and truly on! To be clear, as of the 12th February all derivatives trades (both exchange traded and over the counter) falling under the jurisdiction of EMIR will have to be reported to one of ESMA’s recognised trade repositories. Many firms, having anticipated yet another slip to the implementation deadline, will find meeting the deadline challenging to say the least. This is particularly true given the inclusion of exchange traded derivatives (ETDs), as it had been expected that these would be exempt from the first phase of implementation. In light of this, it seems that Christmas will be cancelled for many IT teams who will now need to spend the festive season struggling to get their solutions over the line ahead of the deadline.
Of course, you may be planning to delegate your reporting to a third party such as your custodian, assuming that this will mean that there is little work for you to do. Unfortunately, this is not the case. If you haven’t already begun to do so, you should certainly be considering the following:
The important message here is that even if you choose to delegate your trade reporting, you may still struggle to meet the February 2014 deadline. However you plan to meet the trade reporting obligation, becoming compliant is a mammoth task and should not be underestimated. Firms now have only 3 months to get agreements in place, exchange and set up all the necessary data, and to review their procedures to ensure that they will be able to efficiently meet their regulatory responsibilities. The starting pistol has been fired and the race to comply is underway; firms that do not act fast to implement robust reporting solutions will fall behind their competitors and risk encountering the wrath of the regulators.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
James Strudwick Executive Director at Starknet Foundation
13 March
Anoop Melethil Head of Marketing at Maveric Systems
12 March
Alex Kreger Founder & CEO at UXDA
Jamel Derdour CMO at Transact365 - www.transact365.io
10 March
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