LUX CSSF EMIR Refit New Standards

On Dec. 21, LUX CSSF issued new EMIR technical standards guide.

  • LUX CSSF issued reporting standards applicable to derivatives reporting under EMIR.
  • Follows, ESMA Dec. 2022, issued guidelines/technical documentation, see #157256.
  • New technical standards enter into force on Apr. 29, 2024, and LUX CSSF considers that there is sufficient time for stakeholders to implement the changes until then.
  • Failure to report accurately from that date will be viewed as an EMIR non-compliance.
  • Reminded all stakeholders in the EMIR reporting value chain that the changes to the reporting framework, which will be applicable as from Apr. 29, 2024, are significant.
  • Invited all stakeholders to start preparing for these changes as soon as possible.
  • Technical Standards
  • New European technical standards include RTS 2022/1855, regarding the minimum details of the data to be reported to trade repositories and the type of reports used.
  • Also, ITS 2022/1860 re standards, formats, frequency and methods for reporting.
  • Also, RTS 2022/1856 amending RTS 151/2013 on the procedure for accessing details of derivatives as well as the technical and operational arrangements for their access.
  • Also, RTS 2022/1858 re procedures for the reconciliation of data between trade repositories and the procedures applied by the trade repository to verify compliance.
  • By the reporting counterparty or submitting entity with the reporting requirements as well as procedures to verify the completeness and correctness of the data reported.
  • The new standards introduced significant changes to the EMIR reporting framework.
  • End-to-end reporting in ISO 20022 XML
  • XML schemas will be required for the communication from reporting entities to trade repositories, from trade repositories to entities, from trade repositories to authorities.
  • So that the same language and format is aligned across the whole reporting chain.
  • It is expected that report submitting entities still using other formats than ISO 20022 XML will need to overhaul their reporting process to meet this new requirement.
  • In addition to the change in formats, the content of the report has also been modified.
  • Alignment with international standards, e.g. the global guidance by CPMI-IOSCO on the definition, format, usage of key OTC derivatives data reported to trade repositories.
  • Including the unique transaction identifier (UTI), the unique product identifier (UPI) and other critical information, described in RTS 2022/1855, ITS 2022/1860 annexes.
  • A transition period of 180 calendar days will be granted to upgrade outstanding contracts that have been submitted to the trade repositories before Apr. 29, 2024.
  • And that do not require any modification or a termination report, as for derivative contracts that mature during this transition period, they do not need to be updated.
  • Mandatory Delegation Framework
  • EMIR Refit transferred the responsibility and legal liability for OTC derivative contracts reporting from non-financial counterparties not exceeding the clearing threshold.
  • To their financial counterparties under certain circumstances under art 9(1a) of EMIR.
  • New technical standards and guidelines introduced arrangements required to be put in place between both counterparties in order to ensure a smooth and efficient process.
  • Even if the reporting is delegated to third parties, the counterparties established in Luxembourg remain responsible for complying with other EMIR requirements.
  • Including the requirement under of record keeping under article 9(2) of EMIR.
  • Art 4 of RTS 2022/1858 requires trade repositories to provide feedback reports also to the other stakeholders involved in reporting, particularly to reporting counterparties.
  • Significant Reporting Issues Notification
  • ITS 2022/1860 introduced a new requirement to notify competent authorities in case of significant reporting issues, clarifying in what circumstances this can take place.
  • LUX CSSF urged stakeholders to ensure that they can identify any reporting issues.
  • Recognise if they fall in ITS 2022/1860 scope and perform the required notification.
  • Trade Repositories New Controls
  • RTS 2022/1858 set into law the controls that trade repositories are required to perform as well as the end-of-day response mechanisms in the stakeholders reporting chain.
  • If a report is rejected under art 1 of RTS 2022/1858, it is considered not submitted.
  • Entities should use the reconciliation feedback to ensure that the data reported is aligned between counterparties and, in case of an inconsistency, it could be resolved.
  • In Mar. 2024, LUX CSSF issued reminder on EMIR REFIT reporting, see #206193.

Regulators LUX CSSF
Entity Types B/D; Bank; Depo; Exch; FCM; HF; Inv Co; OTC
Reference Gd EMIR Refit Reporting Standards, PR 22/33, 12/21/2022; EMIR REFIT Reg 2019/834; EMIR Reg 648/2012; Gd ESMA74-362-2281; RTS 2022/1855; ITS 2022/1860; RTS 2022/1856; RTS 2022/1858; Rpl RTS 148/2013; Rpl ITS 1247/2012
Functions Compliance; Financial; Legal; Operations; Registration/Licensing; Reporting; Risk; Settlement; Trade Reporting; Treasury
Countries Luxembourg
Products Banking; Clearing; Commodities; Deposits; Derivatives; Equity; Forex; Fund Mgt; Hedge Funds; Investment Bank; Securities
Regions EMEA
Rule Type Final
Rule Date 12/21/2022
Effective Date 4/29/2024
Rule Id 157470
Linked to Rule :157256
Reg. Last Update 12/21/2022
Report Section EU

Last substantive update on 12/26/2022