A key ruling under The European Market Infrastructure Regulation (EMIR) could cause a year-end bottleneck as market participants race to meet their reporting obligations under EMIR, according to Louise Goddard, vice president and market initiatives lead for global finance and foreign exchange at Deutsche Bank in London.
“If we consider that we may be implementing new rates and credit reporting along with our other European reporting in November or December, and we’ve got Hong Kong reporting in November or December as well as year-end accounting and client statements, then clearly January 1 will be a difficult date to meet,” Goddard said. “There is a feeling in the industry that perhaps we should reconsider that date.”
Goddard joined fellow panelists David Thomas, London-based programme manager at DTCC Deriv/Serv, and Patrick Philpott, president of DealHub, to discuss the challenges of beginning to report foreign exchange FX trades in January during a live webinar hosted by FX Week on June 5.
After the webinar aired, the European Securities Market Authority (ESMA) announced a deadline of September 24 for registration of trade repositories and a compliance date for reporting for 5 asset classes in January 2014.
While there are currently no trade repositories registered with ESMA, DTCC Derivatives Repository Limited is going through the process to become a registered foreign trade repository with the European regulators, according to Thomas.
“We have devoted extensive resources to help complete the process of becoming a registered trade repository so that we can continue to service our participants.” Thomas said.