IN BRIEF: FCA/BoE finalise changes to UK EMIR trade reporting requirements

IN BRIEF: FCA/BoE finalise changes to UK EMIR trade reporting requirements

On 28th February 2023 the Financial Conduct Authority (“FCA”) and Bank of England (“BoE”) issued a joint policy statement (PS23/2) confirming their final amendments to the trade reporting requirements in UK European Markets Infrastructure Regulation (“UK EMIR”). In this article we summarise the key takeaways from PS23/2 for the benefit of counterparties in scope of UK EMIR. 

Are the FCA and BoE making any significant changes to their proposals in CP21/31?

  • No. The FCA and BoE confirm in PS23/2 that the “final rules are largely unchanged from the draft rules we consulted on”. 
  • For a quick summary of the key proposals in CP21/31, please navigate to our earlier article which is available here
  • The FCA and BoE stated that they had considered final changes made by the EU to its trade reporting regime in November 2022 when drafting PS23/2 and the associated final rules and guidance for the UK. There are some very minor areas of divergence between the UK and EU regimes. 
  • PS23/2 states that non-financial counterparties benefitting from mandatory delegated reporting must provide information to their financial counterparties. This to enable those financial counterparties to meet their obligations. 

When will the changes to the trade reporting regime in UK EMIR enter into force?

  • The changes to the reporting regime will enter into force on 30th September 2024. 
  • When the reporting regime enters into force counterparties will have until 31st March 2025 to update outstanding trade reports. 
  • It is noteworthy that the UK go-live date is currently expected to be five months behind that of the EU (EU scheduled go-live date: 29th April 2024). 

When will the final UK EMIR trade reporting validation rules and XML schemas be available?

  • PS23/2 confirms that these will be published shortly. 
  • We aim to let our subscribers know as soon as the final validation rules and XML schemas have been published. Please click here if you would like to subscribe to our regulatory insights. 

Need help in meeting your regulatory reporting obligations?

C&G’s consultants have substantial, first hand, experience of implementing regulatory reporting regimes gained in an in-house environment across all asset classes. This includes EMIR trade reporting, MiFIR transaction reporting, SFTR reporting, CPR (commodity position) reporting and more. Please contact us today for more information about how we could help. 

References 

2023. PS23/2: Policy Statement: Changes to reporting requirements, procedures for data quality and registration of Trade Repositories under UK EMIR – feedback on CP21/31 and our final rules and guidance. Financial Conduct Authority, available at: https://www.fca.org.uk/publication/policy/ps23-2.pdf (last accessed 2nd March 2023).

Alexander Culley

Alexander Culley

Alexander Culley