Dear Valued Client,
As you are aware, the UK left the European Union on 31 January 2020 and has been in a transition period scheduled to terminate at 11 p.m. GMT on 31 December 2020.
How it impacts our trade repositories
After the transition period ends, DTCC Derivatives Repository Plc (DDRL) will cease to be regulated by the European Securities and Markets Authority (ESMA) and its EU authorisation will terminate. DDRL will instead be authorised by the Financial Conduct Authority (FCA) and will continue operating as an authorised trade repository in the UK.
DTCC Data Repository (Ireland) Plc (DDRIE) will become our ESMA authorised trade repository servicing the EU27.
Both DDRL and DDRIE will support derivatives trade reporting requirements as implemented within their specific jurisdictions as well as the Securities Financing Transactions Regulation (SFTR).
Registered trade repositories in both the UK and the EU
We have submitted our DDRIE registration application to ESMA for reauthorisation prior to the end of the transition period and will confirm our registration in due course. Our UK authorisation has been confirmed by the FCA in line with their authorisation policy to coincide with the withdrawal of the ESMA registration. We will soon be submitting our application to convert our EU SFTR registration.
Your reporting obligations
During the transition, all pre-existing reporting obligations, together with any changes implemented prior to the end of transition, remain in place. This includes all requirements under the European Market Infrastructure Regulation (EMIR) and SFTR.
What happens next?
Reporting counterparties under both EMIR and SFTR should determine their reporting obligations as they relate to the UK and EU27. DTCC will provide regular progress updates on preparations for 31 December including the applicable dates for user-acceptance testing (UAT).