ESMA has just registered the first four trade repositories, two of which are in the UK: UnaVista Ltd and DTCC Derivatives Repository Ltd.
In practical terms this means that the TR reporting obligation begins 12 February 2014 for all derivative asset classes (OTC or exchange traded): “commodities, credit, foreign exchange, equity interest rates and others”. The relevant details must be reported no later than the working day following the conclusion, modification or termination of the contract (EMIR Article 9(1)).
The TR reporting obligation also applies to derivative contracts:
- entered into before 16 August 2012 and remain outstanding on that date, and
- entered into on or after 16 August 2012.
The significance of this date is that it is when EMIR came into force (although not its provisions). Any transaction in (a) above that is still outstanding as at 12 February 2014 must be reported within 90 days of 12 February 2014. Any transaction in (a) or (b) above that is not outstanding as at 12 February 2012 2014 must be reported within three years of 12 February 2014.
Both counterparties need to report unless one party has agreed to report on behalf of both counterparties or is delegated to a third party.
