On Mar. 26, LUX CSSF issued reminder on EMIR REFIT reporting.

  • LUX CSSF reminded all counterparties involved in derivatives transactions of the upcoming entry into force of the new EMIR REFIT reporting on Apr. 29, 2024.
  • This circular has been made available by LUX CSSF in an English version only.
  • Follows LUX CSSF Dec. 2022 new EMIR technical standards guide, see #157470.
  • Follows ESMA Dec. 2022 issued guidelines, technical documentation, see #157256.
  • Follows LUX CSSF Dec. 2023 circular on new ESMA EMIR guidelines, see #193507.
  • Points of Consideration
  • LUX CSSF CSSF requests counterparties consider elements set out in this circular, with a particular emphasis on the importance of testing before implementation of rules.
  • References ESMA's guidance on the EMIR Reporting page, for critical information.
  • Entities shall notify LUX CSSF of significant errors and omissions, as per Article 9 of the ITS on reporting, and LUX CSSF will monitor volume of currently submitted trades.
  • Monitoring by LUX CSSF will include variations in the volumes of reported transactions.
  • Should an entity cease to exist, it must close trades from contractual point of view, and with appropriate termination messages to the relevant Trade Repositories.
  • Should another entity take over the reporting on behalf of one counterparty, that counterparty must ensure that no trades are either forgotten or reported twice.
  • Counterparties are required to monitor the reporting they submit, or the reporting submitted on their behalf and must ensure its accuracy, which is set out by LUX CSSF.
  • Internal Controls for Counterparties
  • LUX CSSF advises internal controls to include, amongst other things the identification of outliers, bad comma placement, bad currency conversion, and bad input data.
  • Also includes application of correct action type (MODI vs CORR), identification and removal of duplicates, timeliness checks (timely reporting), and consistency.
  • Specifically, consistency between trading activity and reporting, so entity only dealing with EQ derivatives should make sure that only EQ derivatives are reported.
  • Counterparties must also ensure consistency over time of the reporting with the real activity, such as volume, amounts, counterparties, advises LUX CSSF in its circular.
  • Importance of Testing
  • Trade Repositories have made their platforms available for testing, and LUX CSSF insists that all participants ensure ability to submit their trades prior to go-live date.
  • LUX CSSF reiterates there has been sufficient time for stakeholders to make changes.

Regulators LUX CSSF
Entity Types B/D; Bank; Depo; Exch; FCM; HF; Inv Co; OTC
Reference PR, 3/26/2024; EMIR REFIT Reg 2019/834
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 3/26/2024
Effective Date 4/29/2024
Rule Id 206193
Linked to Rule :157470
Reg. Last Update 3/26/2024
Report Section EU

Last substantive update on 03/31/2024