EMIR Refit starts in 2020 – how this will affect you?
Source: TRAction Fintech
- Backloading – Any derivative contracts that were outstanding on or after 16 August 2012 and terminated before 12 February 2014 do not need to be reported.
- Intragroup with an NFC – Any intragroup transactions involving Non-Financial Counterparties (NFCs) will be exempt from the reporting obligation if certain conditions are met.
- Financial Counterparties (FC) responsible for NFC- – From 18 June 2020 an FC who trades with an NFC not subject to the clearing obligation (NFC-) will be responsible and legally liable for reporting both sides of the transaction.
- NFC- trading with an FC outside of the EU – From 18 June 2020 an NFC- is not required to report as long as an FC reports to an equivalent regime outside of the EU.
- Management company of UCITS / AIFs responsible – From 18 June 2020 if a UCITS or an AIF enters into a derivative transaction the management company will be responsible for reporting on behalf of the UCITS or AIF.
- Authorised Entity of IORP responsible – From 18 June 2020 the authorised entity responsible for managing and acting on behalf of Institutions for Occupational Retirement Provision (IORP), that does not have legal personality, will be responsible for reporting the derivative contract on behalf of the IORP.
- EUR 1 billion for OTC credit derivative contracts;
- EUR 1 billion for OTC equity derivative contracts;
- EUR 3 billion for OTC interest rate derivative contracts;
- EUR 3 billion for OTC foreign exchange derivative contracts; and
- EUR 3 billion for OTC Commodity derivative contracts and all other classes of OTC derivatives combined.
- ‘Corporate sector of the reporting counterparty’
The following categories correspond to the main sections of Statistical Classification of economics activities in the European Community (NACE) as defined in Regulation (EC) No 1893/2006 of the European Parliament and of the Council:
- Agriculture, forestry and fishing
- Mining and quarrying
- Manufacturing
- Electricity, gas, steam and air conditioning supply
- Water supply, sewerage, waste management and remediation activities
- Construction
- Wholesale and retail trade, repair of motor vehicles and motorcycles
- Transportation and storage
- Accommodation and food service activities
- Information and communication
- Financial and insurance activities
- Real estate activities
- Professional, scientific and technical activities
- Administrative and support service activities
- Public administration and defence; compulsory social security
- Education
- Human health and social work activities
- Arts, entertainment and recreation
- Other service activities
- Activities of households as employers; undifferentiated goods – and services –producing activities of households for own use
- Activities of extraterritorial organisations and bodies
- ‘Directly linked to commercial activity or treasury financing’
Subscribe Now
