On 4 September, the Financial Conduct Authority (FCA) published a website seeking feedback (Consultation) on draft questions and answers (Q&As) intended to assist UK trade repositories (TRs) registered under Article 55 of the UK European Market Infrastructure Regulation (UK EMIR) with implementing the updated reporting requirements under Article 9 of UK EMIR. The new reporting requirements will come into effect on 30 September, subject to a transitional period for certain rules.
Background
The Consultation follows the FCA and Bank of England's February 2023 joint policy statement (PS23/2), setting out updated requirements to the UK EMIR derivative reporting framework.
The Q&As respond to requests from TRs for guidance specific to their operations and the validation of certain fields in industry-submitted reports.
Consultation and Q&As
The proposed Q&As of the Consultation intend to clarify the following areas:
- whether Trade State Reports (TSRs) should include both new and old formats of derivatives reports;
- what approaches TRs should take in publishing and validating data, such as the Event Date field when processing client submissions and generating the TSRs;
- what relaxed schema should be used by TRs going through the inter-TR reconciliation process during the transition period;
- the specific schema used for porting data between TRs;
- whether in addition to the XML format, TRs may also send Allege information reports in other formats should they desire or on the reporting counterparties' request;
- the processes for updating legal entity identifiers (i.e., LEIs) during a restructuring;
- how TRs should address outstanding derivatives reports where the reporting counterparty has been dissolved; and
- further explanation on issues relating to particular fields and schemas.
Next Steps
The Consultation closes on 25 September. The FCA intends to incorporate feedback received on the Consultation into its final guidance, which it will publish on its TRs webpage.
The Consultation and PS23/2 are available here and here, respectively.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.