The Cyprus Securities and Exchange Commission (‘CySEC’) published its circular C593 regarding the new reporting requirements under the European Market Infrastructure Regulation (EMIR), which will become applicable on 29 April 2024.
Point Nine is actively preparing and reviewing all guidelines and reports published by the NCAs and the regulators in preparation for the new reporting requirements. Please see below some points from the Cysec Circular and some articles already available on the Point Nine website where we explain some of the changes that will be introduced:
- EMIR Refit – Reporting under the new RTS /ITS
- EMIR REFIT: Review of the Entity Responsible for Reporting field
- EMIR REFIT: Notification to NCAs on Data Quality Issues
- EMIR REFIT: New Fields – Lifecycle Events
- EMIR REFIT: New Fields – Direction of the trade
|CySEC Circular C593||Point Nine Solution|
|Reporting in ISO 20022 XML||Firms will be required to submit their transaction reports to the trade repositories (TR) in the ISO20022 XML format. The feedback reports from the trade repository will also be in the same format. This will normalize the reporting formats across trade repositories which will allow for an increase in the supervisory effectiveness by the regulators.Point Nine has been submitting their EMIR transaction reports in XML format for a number of years now. All transaction reports submitted to the TR and the feedback status received from the TR is visible on the Trade Blotter on the Point Nine client portal.|
|Reportable fields||The number of fields to be reported is increasing from 129 to 203.
Firms will have 6 months grace period to update their outstanding derivatives to the new format.We see The Entity Responsible for Reporting (This field represents the entity responsible and legally liable for reporting) Event Date field introduced in EMIR like it is under SFTR , Direction fields are replacing the Counterparty Side (buyer/seller field), the Derivative based on crypto-assets field, which will allow counterparties to identify if the underlying is a crypto -asset. Point Nine is currently reviewing all changes to reportable fields, waiting on the TRs to provide the relevant UAT environments, collaborating with partners and clients to ensure compliance with the new format by go live date. For further details please see Articles 2, 4, 5 listed above.
|Unique Trade Identifier (UTI)||As per Article 7 in the ITS, A derivative, reported either at transaction or position level, shall be identified using a ISO 23897 Unique Transaction Identifier (UTI) in field 1 in Table 2 of the Annex. The UTI shall be composed by the LEI of the entity which generated that UTI followed by a code containing up to 32 characters which is unique at the level of the generating entity. Point Nine already has a full UTI solution in place on both trade and position level. Point Nine can be the UTI generating party for its clients and its counterparties using ESMA prescribed methods or ingest the UTI received from our clients counterparties.|
|Notification of significant reporting issues to competent authorities||As per Article 9 in the ITS The entity responsible for reporting (ERR) shall notify its competent authority and, if different, the competent authority of the reporting counterparty of any of the following instances: 1. any misreporting caused by flaws in their reporting, 2.any reporting obstacle preventing the report submitting entity from sending reports on time 3. any significant issue resulting in reporting errors that would not cause rejection by a TR. Point Nine’s automated email notification system and client portal with its Trade and Reconciliation Blotters provides this transparency to its clients and access to the portal can also be granted to our clients’ clients. For further details please also see article 3 on P9 website listed above.|