It is February 12, corporates in Europe should now be reporting their derivative trades including intra-group (and also their back trades to August 2012). But it appears that most corporates are not ready due the lateness of the regulations being announced and the huge remaining uncertainties. AND, not only this, EuroTreasurer magazine are expecting ESMA to announce new clarifications to the regulations, in the form of a Q&A, later this week.

The only thing that is clear is that, from today, corporates are obliged to report, and if they do not, are liable for fines. Fortunately, an ESMA spokesperson, has said that the EU regulator "appreciates the difficulties experienced by non-financial corporations" and has suggested that punitive measures such as fines will be used at a later stage. (In Germany the Bundesbank, one of Europe's most powerful financial watchdogs, has set a maximum fine for reporting failures at €100,000.)

General opinion is that when your financial authority enquires what is happening, that they will be satisfied  initiallywith a description of your plans for:

• generating the data internally
• how the data will be reported and to whom
• the go-live date.

How long will you be allowed?

In 2013, ESMA asked the European Commission for an extension of one-year in the implementation of the EMIR reporting regulations. Maybe the authorities will effectively allow this one year extension by being relaxed about corporates not reporting for a year? Something has got to give…..