EMIR

What is EMIR?

The European Market Infrastructure Regulation (EMIR) establishes a comprehensive framework for the reduction of risk in the financial system and to increase transparency in the derivatives market. The reporting obligation of EMIR requires all entities that enter into derivative contracts must report the details of such contracts to a registered trade repository.

When Did the Reporting Requirement Come Into Force and Who Does It Apply To?

The reporting requirements under EMIR came into effect on February 12, 2014. These obligations apply to all counterparties involved in derivatives contracts, which includes both Over-The-Counter (OTC) and exchange-traded derivatives. This encompasses financial counterparties (FCs) and non-financial counterparties (NFCs), with some exceptions.

What Is Reportable?

Under EMIR, the following must be reported:

  • All derivatives contracts: This includes both OTC and exchange-traded derivatives.
  • Details of the transaction: Such as the identities of the counterparties, the type of derivative, and the notional amount.
  • Lifecycle events: This includes any changes to the contracts, such as terminations, or modifications.
  • Collateral and valuations: Reporting of collateral and the current valuation of the derivatives is also required.

How Often Is It Reportable and What Are the Deadlines to Report?

New trades & Lifecycle events must be reported without delay, the next business day of execution.

Where Do You Submit the Reports?

Reports must be submitted to trade repositories (TRs) that are registered and authorized by the European Securities and Markets Authority (ESMA).

In What Format Is EMIR Reportable?

The reporting must adhere to specific formats and standards, primarily using ISO 20022 XML for data submission.

How can Finmatek help you?

Finmatek provides comprehensive support for EMIR reporting, designed to help financial institutions comply with regulatory requirements efficiently and effectively.

  • Automated Reporting Solutions: Finmatek offers advanced technological solutions that automate the EMIR reporting process, which helps in minimizing manual errors and ensuring timely submissions.
  • Training and Support: We deliver training to staff on EMIR regulations and the reporting process, along with ongoing support for any system-related inquiries and updates on regulations.
  • Cost Efficiency: By using Finmatek’s solution, firms can lower technology costs associated with connecting to the TR directly.
  • On-boarding process: Finmatek will assist you in a streamlined onboarding process, equipping your staff with essential knowledge about EMIR and the reporting procedures
  • Tailored to Your Needs: Our system is highly customizable to align with the specific requirements of our clients.