On 7 November 2013 the European Securities and Markets Authority (ESMA) has approved the registrations of the first four trade repositories under the European Market Infrastructure Regulation (EMIR). Those registered trade repositories are:

  • DTCC Derivatives Repository Ltd. (DDRL), based in the United Kingdom;
  • Krajowy Depozyt Papierów Wartosciowych S.A. (KDPW), based in Poland;
  • Regis-TR S.A., based in Luxembourg; and
  • UnaVista Ltd, based in the United Kingdom.

The registrations will take effect on 14 November 2013. The reporting obligation will start 90 calendar days thereafter, i.e. on 12 February 2014 which follows from Art. 5(1)(b) of the Commission implementing Regulation (EU) No. 1247/2012 of 19 December 2012.

The reporting requirements under Art. 9 of Regulation (EU) No. 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories ("EMIR") are further specified by the Commission delegated Regulation (EU) No. 148/2013 of 19 December 2012 (with regard to regulatory technical standards on the minimum details of the data to be reported to trade repositories) and by the Commission implementing Regulation (EU) No. 1247/2012 of 19 December 2012 (laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories).

ESMA has in its report "Draft implementing technical standards amending Commission Implementing Regulation (EU) No. 1247/2012 laying down implementing technical standards with regard to the format and frequency of trade reports to trade repositories" under EMIR recommended to delay the reporting obligation for exchange traded derivatives. So far, the Commission has not amended Art. 5 of the Commission implementing Regulation (EU) No. 1247/2012.

Reporting is one of the three pillars under EMIR (together with central clearing and risk mitigation for non-centrally cleared derivatives). Reporting applies with respect to all derivatives and all counterparties.

Trade repositories are commercial firms that centrally collect and maintain the records of derivatives contracts reported to them. The registration of these trade repositories means that they can be used by the counterparties to a derivative transaction to fulfill their trade reporting obligations under EMIR.

The above registered trade repositories cover all derivative asset classes – commodities, credit, foreign exchange, equity, interest rates – irrespective of whether the contracts are traded on or off exchange.

Risk mitigation obligations are partially already in effect since 15 March (timely confirmation, daily evaluation) and 15 September (portfolio reconciliation, portfolio compression and dispute resolution). Central clearing obligation is expected to take effect in summer or autumn 2014 (with potential retroactive effect for the period between notification and adoption of regulatory technical standards specifying the class of OTC derivatives that should be subject to the clearing obligation.