European Union (EU) Derivative Trade Reporting (EMIR)

Overview of EU Reporting (EMIR)

The regulation of over-the-counter (OTC) derivatives in the European Union is primarily governed by the European Market Infrastructure Regulation (EMIR), overseen by ESMA (European Securities and Markets Authority).

Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR).
Commission Delegated and Implementing Regulations supplementing EMIR.
Regulation (EU) No 600/2014 on markets in financial instruments (MiFIR) which also has implications for reporting.
ESMA Guidelines and Technical Standards providing compliance guidance.

Financial Counterparties (FCs): Investment firms, credit institutions, insurance undertakings, UCITS, AIFs, central counterparties (CCPs), central securities depositories (CSDs).
Non-Financial Counterparties (NFCs) exceeding certain thresholds for their aggregate month-end average position in OTC derivatives.
Certain third-country entities may also be subject to EMIR reporting obligations.

If you’re unsure if your entity is subject to these requirements, contact us for a consultation.

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EMIR covers a broad range of OTC derivatives, including interest rate, foreign exchange, credit, equity, and commodity derivatives. Certain exemptions may apply to specific types of contracts.

Transactions and Participants

EMIR requires the reporting of all derivative contracts (OTC and exchange-traded) concluded, modified, or terminated by EU counterparties to registered or recognised trade repositories.

This includes details of the counterparties, the terms of the contract, and any collateral posted.

Both counterparties are generally responsible for reporting, although delegated reporting is common.

Let us help you understand if the dual-sided or delegated reporting model is right for your business

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Reporting Deadlines

The standard reporting deadline under EMIR is generally T+1 business day following the conclusion, modification, or termination of the derivative contract.

Reporting Format and Submission Method

Reports must be submitted to Trade Repositories (TRs) registered or recognised by ESMA.

The reporting format follows specific standards defined in the EMIR Implementing Technical Standards (ITS), including ISO 20022 messaging standards.

Identifiers

UTI: each transaction must have a Unique Trade Identifier (UTI) agreed upon by the counterparties.
LEI: counterparties are identified using a Legal Entity Identifier (LEI).
UPI: a Unique Product Identifier (UPI) is required for derivative classification.

EMIR Refit (Regulation (EU) 2019/834) introduced several changes, including simplified reporting obligations for NFCs below certain thresholds and clarifications on reporting logic. Further regulatory changes and updates are expected as the regulatory landscape evolves.

Contact us to understand how these changes will affect your specific reporting obligations.

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Key Challenges in EU Reporting (EMIR)

Data Quality and Reconciliation – Ensuring accurate and consistent reporting across counterparties and trade repositories.
Understanding Reporting Obligations for Different Counterparty Types (FC vs. NFC).
Implementing and Maintaining Systems to Meet the T+1 Reporting Deadline.
Keeping Abreast of Frequent Regulatory Updates and ESMA Guidance.
Ensuring Correct Use of Identifiers (UTI, LEI, UPI).