On Mar. 1, UK FCA, UK BoE issued draft FAQs on reporting topics 1-5.
FCA is seeking feedback alongside BoE on its draft guidance for reporting under the revised UK EMIR Article 9 reporting requirements, guidance is in form of set of FAQs.
Also updated UK EMIR reporting obligation webpage to highlight the consultation.
In Feb. 2023, FCA and BoE issued a joint policy statement confirming amendments to derivative reporting framework under UK version of EMIR (UK EMIR Reg 648/2012).
Most new requirements applicable from Sep. 30, 2024, transition period in some areas.
As part of the original consultation process FCA received requests for supporting guidance on how the updated UK derivatives reporting framework will be implemented.
So is providing guidance to support implementation of EMIR reporting requirements that go live Sep. 30, 2024, the guidance is in the form of FAQs grouped into topics.
FCA is consulting on the FAQs jointly with BoE to gather feedback from the industry.
Draft FAQs
Primarily relevant for counterparties in scope of the UK EMIR reporting requirements.
Trade repositories (TRs) registered or recognized under UK EMIR, 3rd party services providers who offer reporting services to counterparties subject to UK EMIR reporting.
Trade associations etc who work with counterparties subject to UK EMIR Reporting.
Draft FAQs have been informed by discussions with trade associations, reporting counterparties, TRs and central counterparties (CCPs) via an engagement group.
Will cover following topics: transitional arrangements; reconciliations; errors and emissions; derivative identifiers; action and events; venues; exchange traded derivatives; margin and collateral; clearing; post trade risk reduction; position level reporting; asset class and product specific; first 5 are covered in current consultation.
In certain circumstances the draft Q&As also require a corresponding change to the UK EMIR Validation Rules to address industry feedback and correct identified errors.
So FCA is also consulting on these changes, and indicates in the relevant question and answer where such a change is proposed, does not usually consult on such rules.
In relation to question.5.3 also published an illustrative incorrect reporting scenario.
FCA and BoE will consult on draft FAQs on the rest of the topics later in spring 2024.
Effectiveness
FCA, BoE welcome feedback on draft FAQs topics 1 to 5, i.e. transitional arrangements; reconciliations; errors and emissions; derivative identifiers; action and events.
Should be submitted by Mar. 28, 2024, final versions will then be issued on website.
CCPs should submit feedback to BoE via email, all other reporting counterparties to FCA via email, and other respondents may submit by email to either FCA or BoE.
In Mar. 2024, FIA issued response to the UK FCA and BoE consultation, see #206669.
Apr. 2, 2024 Consultation Closed
On Apr. 2, 2024, UK FCA updated consultation webpage to confirm that the first FAQs' consultation is closed, it will issue finalized FAQs when it has reviewed feedback.
It will consult on proposed FAQs covering topics 6 to 12 later in spring 2024.
May 2, 2024 First Q&As Finalized
On May 2, 2024, UK FCA published final UK EMIR reporting questions and answers following its consultation in Mar. 2024, which are applicable from Sep. 30, 2024.
The finalized Q&As provide guidance on how updated derivative reporting framework under UK EMIR will be implemented, and are grouped into topics for ease of reference.
Are to be read in conjunction with FCA/UK BoE policy statement 23/2 and supporting documentation including FCA Standards Instrument (FCA 2023/4), the technical specification documents, UK EMIR validation rules, and the EU EMIRR rules for TRs.
Q&As apply re the new requirements from Sep. 30, 2024, reporting counterparties should take pragmatic approach in considering their application alongside any existing guidance, including circumstances where the new Q&as may supersede them.
In due course FCA intends to review existing guidance, consider where still relevant.
On same day, FCA consulted on topics 6-11 re EMIR reporting FAQs, see #210845.
Jun. 2024 EMIR Reporting FAQs Page Update
On Jun. 13, 2024, UK FCA updated UK EMIR reporting questions and answers page to note recent consultation on further Q&As; finalized Q&As will be published shortly.
