On May 2, FCA, BoE issued draft FAQs on EMIR reporting topics 6-11.
FCA is seeking feedback along with UK BoE on further FAQs which aim to provide guidance for reporting under the revised UK EMIR Article 9 reporting obligations.
And proposes some additional questions under topics previously consulted on.
Also updated UK EMIR reporting obligation webpage to highlight the consultation.
On same day UK FCA issued final FAQs on UK EMIR reporting topics 1-5, see #203079.
Background
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.
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.
Draft FAQs on topics 6 to 11 concern: venues; exchange traded derivatives; margin and collateral; clearing; position level reporting; asset class and product specific.
FCA proposes some additional questions under listed topics 1, 4 and 5, respectively these concern: transitional arrangements; derivative identifiers; action and events.
And indicates in relevant Q&As where change is required to UK EMIR validation rules.
Effectiveness
Feedback on draft Q&As, validation rules should be submitted by Jun. 12, 2024.
Jul. 12, 2024 Finalized Q&As on Topics 6-11
On Jul. 12, 2024, UK FCA issued finalized versions of Q&As covering topics 6 to 11.
And additional questions and answers under topics 1, 4 and 5, following consultation.
The finalized Q&As apply regarding the new requirements taking effect Sep. 30, 2024.
On Jul. 12, 2024, UK FCA issued further brief consultation on EMIR FAQ, see #219284.
Jul. 26, 2024 Final Q&As on Topics 6-11
On Jul. 26, 2024, UK FCA confirmed the outcome of its consultation on changes to the UK EMIR Validation Rules required by the Q&As, these rules have now been finalized.
Applicable Sep. 30, 2024, FCA does not intend to make further changes before then.
The finalized changes have been marked in red in the document to make visible.
FCA also made a minor change to schema to address an error with field 1.10 (country of the counterparty 2) which would have led to reports being incorrectly rejected.
The regulator also updated its UK EMIR Reporting obligationwebpage to add the updated validation rules and XML schemas for incoming and outgoing messages.
And the FCA published the final Q&A 10.9, following a brief consultation, see #219284.
All the FCA's UK EMIR reporting questions and answers have now been published.
Firms should review these and incorporate guidance into their reporting arrangements.
