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EMIR REFIT- New Requirements on Transaction Reporting
The EMIR Regulation aims to increase transparency in the OTC derivatives markets and to reduce the systemic risk due to the non-compliance of the derivatives’ counterparties.
Where are we now?
ESMA is defining new technical standards. The new EMIR REFIT will entry into force on the 20th day of publication in the Official Journal of the European Union.
Expected GoLive: Q1 2024
New changes bringing new challenges
ISO 20022
ESMA proposes that XML schemas should comply with the ISO 20022 methodology.
Fields Reporting
EMIR Refit introduces new fields that need to be reported reaching a final number of 203 fields.
Crypto Assets
The EMIR REFIT has created a new field called ‘Derivative based on crypto-assets’ aimed to identify crypto based transactions.
Standards
ESMA is adopting standards promoted by CPMI-IOSCO for defining the logic structure of UTIs, UPI and other trade and instrument definitions.
Lifecycle
The EMIR REFIT is adding the Event Type to lifecycles in order to describe more in details the underlying business event.
Looking ahead: Regtech Application to EMIR REFIT
Reply continuously explores innovative technological solutions that can be applied to financial regulations to improve the reporting process using a data-driven approach. In particular, the ISDA Common Domain Model (CDM) enables supervisors, regulators and regulated firms to streamline the financial-reporting chain by adopting machine-readable and machine-executable digital reporting.
How Reply can help
It is essential to monitor the regulatory updates in order to foresee the changes, so we built up an observatory on regulatory financial reporting. We have also a consolidated roadmap, including:
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Consultation & Final Paper
Analyze the new RTS and ITS technical standards in order to manage the trades according with the regulation.
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Gap Analysis
Highlight information and process gaps.
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Impacts & Remediation Action
Analyze the impacts at business and IT level and define the best Remediation Actions for each gap identified.
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Solution & Execution