ESMA has registered four Trade Repositories for EMIR reporting
by Kylene Casanova
ESMA has announced that it has registered DTCC, based in the UK, KDPW in Poland, Regis-TR in Luxembourg and UnaVista, also based in the UK, as registered trade repositories (TR) under the EMIR directive. Given the previous delays, the application vetting process has been extremely careful and very slow assessing the half-dozen applications it has received so far – often containing thousands of pages. (ESMA are reviewing further applicants.)
ESMA said these registrations will take effect on 14 November 2013, with the reporting obligation beginning on 12 February 2014, i.e. 90 working days after the official registration date. They clearly believe that with this approval of trade repositories, the mandatory reporting for derivatives is now certain and on 12 February 2014, all users will have to meet the EMIR reporting requirements. However, many experts are not so sure.
The market concerns
Theoretically, treasurers will now be able to take the final steps towards EMIR implementation, as they can now link up with TRs for trial reporting. Banks, by far the largest users of derivatives, will likewise be able to work with TRs.
However, comments on LinkedIn and on other forums indicate the market is not so sure with suppliers and treasurers expressing doubts as to whether all details will be resolved by 12 February, e.g. probably the biggest issue as to whether intra-group hedges have to be reported.
Nevertheless, at least, the choice of four TR is a start.
Like this item? Get our Weekly Update newsletter. Subscribe today