Trésorier/Treasurer magazine - N°85 - April/May/June 2014 - (Page 25)

FORUM Trade reporting: In Europe, under the European Markets Infrastructure Regulation (EMIR) reporting of over-the-counter (OTC) and exchange traded derivatives (ETD) for all asset classes entered into force almost one month ago. As we look at the progress of trade reporting to date, it appears the industry is set to undergo a significant adjustment period before the trade reporting function can fully meet the requirements of the new regulatory framework. This article seeks to explore those issues pending resolution. Reconciliation and aggregation Under EMIR, trades will need to be reconciled on a daily basis amongst trade repositories using a Unique Transaction Identifier (UTI), which has been recognised and adopted as the universal prerequisite for effective trade reporting and aggregation. Once the trade has been reported, the trade repository will then reconcile the reports and notify counterparties of any discrepancies and then make this data available to the European Securities Markets Authority (ESMA). For firms, deciding which counterparty will generate a UTI - the corporate or its dealer -, determining how best to exchange, maintain and track the UTI over the lifecycle of the derivative trade is a procedure that all corporates will need to determine as soon as possible. However, there are a number of issues currently faced by the industry in generating, exchanging and matching UTIs. To add further confusion, there is currently no internationally agreed or recommended UTI but various ideas and precedents are developing, notably with the International Swaps and Derivatives Association (ISDA) taking a lead. Back-loading Aligned to the issue of UTIs is the process of back-loading. EMIR mandates that derivative transactions which are outstanding on the reporting start date and which were entered into on or after 16 August 2012 must be reported on or before the reporting start date. Derivative transactions which are outstanding on the reporting start date and which were also outstanding on 16 August 2012 must be reported on or before 13 May 2014 (i.e. within 90 days of the reporting start date). Whilst the majority of sell-side firms are already in advanced stages of uploading their live historic trades into their systems, and started doing so before the 12 February date, it appears that buy-side firms, and particularly smaller corporates are in the early stages of, or are yet to even begin, back-loading this data. Whilst firms have several months to complete the back-loading process, they should be locating this data now to ensure that they are not left with a backlog of trades to upload ahead of the 13 May 2014 deadline. LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°85 - APR The last year has seen regulations mandating reporting of derivative trades being gradually implemented in a number of key jurisdictions around the world. As a result, it has been and continues to be an extremely busy time for regulators, service providers and market participants alike. / MAY / JUN 2014 the story so far 25

Table des matières de la publication Trésorier/Treasurer magazine - N°85 - April/May/June 2014

INTERVIEW L’impact du nouveau référenteil COSO sur les trésoriers

Trésorier/Treasurer magazine - N°85 - April/May/June 2014