EMIR Refit

EMIR Refit introduces, among other things, the following changes in the field of reporting:

• The introduction of a unique product identifier (UPI) to unambiguously identify derivative products.

• The increase in the number of fields to be reported up to 203.

• Increase in the clearing obligation: The clearing obligation for OTC derivatives is extended to a wider range of derivatives, including FX derivatives and commodity derivatives.

• The reporting obligation only applies to derivatives entered into after 16 August 2012 and still outstanding on or after 12 February 2014.

• The introduction of an exemption from the clearing obligation for small financial counterparties (FC-). These are financial counterparties that do not exceed a certain threshold in terms of their total gross nominal position in non-centrally cleared derivatives.

• The introduction of an exemption from the reporting obligation for intra-group derivatives. These are derivative contracts entered into between two entities within the same group, provided certain conditions are met. However, the exemption does not apply automatically; counterparties must make a notification using the special form available at: Reporting to the AFM.

• The introduction of an ISO 20022 XML message standard for transaction reporting. In EMIR Refit, the ISO 20022 XML message standard is introduced to improve and harmonise transaction reporting.

• The shift of responsibility for reporting OTC derivatives entered into by financial counterparties with non-financial counterparties falling below the clearing threshold, to the financial counterparty.

• The introduction of an obligation to report to the relevant competent authority in the event of misreporting caused by flaws in reporting systems or obstacles that prevent reporting to a trade repository within the T+1 deadline.

• All existing open positions (including those traded prior to the go-live date) must be transitioned to the new reporting standard within six months of the go-live date.