All counterparties must report details of any derivative contract (OTC or exchange traded) they have concluded, or which they have modified or terminated, to an FCA registered, or recognised, trade repository (TR) under the UK EMIR reporting requirements.
UK EMIR validation rules
UK reporting counterparties and UK TRs should use the UK EMIR validation rules (last update 24 November 2020) when submitting derivative transactions entered into from 11pm on 31 December 2020 onwards.
Please note, these validation rules also include references to future amendments to the rules that will apply from 8 March 2021.
Note on UK EMIR reporting requirements
On 24 November 2020 we published an updated note highlighting our expectations for firms in relation to their UK EMIR reporting requirements immediately following the end of the transition period.
UK EMIR breach notification form
You can use this form to notify us about any errors or omissions in your reports under Art. 9 of UK EMIR. Completed forms should be sent to [email protected].
You should note the following when completing the form:
- If you have provided date(s)/timeframe(s) by which you intend to complete remediation of the reported issues, back report the impacted transactions, and/or carry out improvements in your systems and controls, we request an update is sent to us by the stated date(s)/timeframe(s).
- If you are taking a multi-stage approach to remediation and have provided any date(s)/timeframe(s) by which the individual stages are expected to be completed, we request periodic updates by the stated date(s)/timeframe(s).
- If you have been unable to fully answer any of the questions in the form, but have stated a date(s)/timeframe(s) by which a complete answer will be available, we request that further information is sent to us by the stated date(s)/timeframe(s).
Reporting requirements to TRs
Choosing a TR
UK EMIR trade reports may only be submitted to TRs that are registered or recognised by us. A list of registered TRs can be found on our TR webpage.
It is possible to meet the reporting obligation by reporting to any FCA registered or recognised TR.
The details to be reported are set out in the final reporting UK EMIR Binding Technical Standards (BTS) (see the UK EMIR Library). Our January 2019 supervisory statement confirms our approach to the backloading requirement.
Timetable for reporting to TRs
- All new derivative trades entered into by UK counterparties, on or after 11pm on 31 December 2020, are in scope of the UK EMIR reporting regime and must be reported to an FCA registered or recognised TR.
- UK-based TRs that have converted their ESMA registration under the TR SI, and EU27 based TRs that have established a new TR in the UK and entered the temporary registration regime under the TR SI, have been instructed to maintain a copy of historic EMIR data in relation to trades reported since 1 November 2017 (ie derivative trades reported under EMIR since 1 November 2017 that are no longer outstanding) to which we and the Bank of England have had access to historically.
- More information on the reporting requirements under UK EMIR can be found in our Note on UK EMIR reporting requirements
How to fulfil the reporting obligation
Both counterparties must report their side of the trade unless, by prior arrangement, one party can report on behalf of both counterparties (or the law requires a financial counterparty to report on behalf of its counterparty – as to which see the further point below). Where one report is made on behalf of both counterparties, the report must indicate this fact. The UK EMIR BTS set out what information shall be submitted in relation to each of the counterparties, and what information shall be submitted only once.
- Either counterparty to the trade may delegate reporting to a third party (such as a central counterparty or trading platform).
- Where one counterparty reports on behalf of another counterparty, or a third party reports a contract on behalf of one or both counterparties, the details reported shall include the full set of details that would have been reported had the contracts been reported by each counterparty separately.
- A financial counterparty is solely responsible and legally liable for reporting on behalf of both counterparties, the details of OTC derivative contracts concluded with a non-financial counterparty not subject to the clearing obligation. To make sure the financial counterparty has the data it needs to fulfil its reporting obligation, the non-financial counterparty must provide the financial counterparty the details relating to the OTC derivative contracts concluded between them, which the financial counterparty cannot be reasonably expected to possess. If the non-financial counterparty wishes to continue to report these OTC derivative contracts, they may do so, but they should inform the financial counterparty accordingly.
- If one or each of the counterparties in an OTC derivative is a UCITS or an AIF (including third country AIF), the management company of the UCITS or the AIF manager (as applicable) is responsible for the reporting on behalf of that UCITS or AIF.
- The authorised entity responsible for managing and acting on behalf of an IORP that does not have legal personality will also be responsible for reporting the details of OTC derivative contracts on behalf of that IORP.
- If a non-financial counterparty is not subject to the clearing obligation and concludes an OTC derivative contract with an entity established in a third country, that OTC derivative contract does not need to be reported by the non-financial counterparty, provided that:
- The third-country entity would be qualified as a financial counterparty if it were established in the UK.
- The legal regime for reporting the third-country entity is subject to is declared equivalent under Article 13 of UK EMIR.
- The third-country entity has reported the details of the OTC derivative contract pursuant to that third-country legal regime for reporting to a TR, which is legally bound to provide access to the data to the entities referred to in Article 81(3) of UK EMIR.
Intragroup reporting exemption
Derivative contracts within the same group where at least one counterparty is a non-financial counterparty (or would be qualified as a non-financial counterparty if it were established in the UK) are exempt from the reporting obligation provided that specific conditions are met.
If you intend to take advantage of this exemption, you must first notify us.
Please see our EMIR notifications and exemptions webpage for more information on how to notify us.
TRs registered or recognised by us
UK EMIR trade reports may only be submitted to trade repositories which are registered, or recognised by us.
Four TRs have been registered by us and will offer services to UK clients from the end of the transition period:
- ICE Trade Vault Europe Limited
- UnaVista Limited
- DTCC Derivatives Repository Plc
- REGIS-TR UK Limited (intended)
More information on FCA registered, or recognised, TRs can be found on the our TR webpage.
Issuance of legal entity identifiers
All UK counterparties entering into derivative trades need to have a Legal Entity Identifier (LEI) in order to meet the UK EMIR reporting obligations.
LEIs are issued by Local Operating Units (LOUs) on the Global LEI System.
The list of LOUs accredited by the Global LEI Foundation (GLEIF) can be found on the GLEIF website and includes the London Stock Exchange. Some of these registries serve a given country, while others offer services to entities worldwide.
LEIs issued by pre-LOUs that have been endorsed by the ROC or accredited by the Global LEI Foundation can also be used for UK EMIR reporting.
More information on how to obtain an LEI can be found on the LEI ROC website.