TRAction co-CEO Reminds: UK Firms Need to Update Pre-EMIR Refit Trades by 29 March 2025

By Quinn Perrott

co-CEO, TRAction

Under the UK EMIR Refit regulations which commenced on 30 September 2024 in the UK, a 180 day (6 month) transition period was provided to allow for reporting entities to update their non-compliant (i.e. not compliant with EMIR Refit) trades entered into before the Implementation Date.

This means the UK EMIR Refit old format (for open trades) window closes on 29 March 2025 (for UK) and all trades that sit under the old EMIR formatting parameters need to be updated to conform with the new UK EMIR Refit reporting requirements.

As of 30 September 2024, the FCA accepted trades that were entered into prior to this date with the expiry being after the effective date even if they did not meet the new standards required post Implementation Date.

Separately, EU EMIR Refit went live on 29 April 2024, meaning the 6-month transitional period to update impacted trades lasted until 26 October 2024.

Examples of a trade still open in the old format

Here's some examples of when a firm may need to update their trades:

• ​A firm may have entered into a reportable trade such as a 12 month dated FX forward, on 20 April 2024 and its maturity date is on 20 April 2025. For this particular trade, however, although they may not have had a UPI at the time and/or a UTI was made up (not aligning with the UTI standards).

• For previously reported Power Purchase Agreements (PPAs) that are outstanding for over 6 months after the Implementation Date, they will need to re-report these in the new required format.

Reportable trades (including PPAs), will need to be converted into the UK EMIR Refit format and re-submitted if they were entered into prior to 30 September 2024, but outstanding until after 29 March 2025 (for UK).

Other things to note

• ​Trades should be updated even if there have been reports of daily collateral and valuation updates during the transition period, but no modification or correction concerning the trade has occurred.

• ​For terminated or matured trades during the transition period, reports do not need to be submitted with 'Update' as the event type if no reportable changes occurred to the trade. i.e. no updating or re-reporting is required for these.

• All outstanding derivatives are to be updated (trade and position level reporting).

What do I have to do?

If a firm is undertaking the trade reporting themselves or through a delegate, they should follow the below steps:

• ​First ensure that the firm's current trades entered into post-Implementation Date are compliant with the new EMIR Refit requirements. If there are any breaches, these need to be reported to the relevant regulators.

• ​Consider and identify the trades entered into pre-Implementation Date that need to be updated along with the details that need to be corrected or revised.

• ​Submit reports: By 29 March 2025 (for UK), for identified impacted trades, the firm should submit a report such that 'Update' is populated for Event Type (where a report has not already been submitted with 'Modify' or 'Correct' as the action type to correct trade details)