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Clearing members increasingly reporting under EMIR for buy-side clients 

September 8, 2014
COO Connect

Clearing members are increasingly reporting over-the-counter (OTC) and exchange traded derivatives (ETDs) to trade repositories under the European Market Infrastructure Regulation (EMIR) on behalf of their buy-side clients following an initial reluctance.

While some clearing members mellowed in their approach towards reporting ETDs in the run-up to EMIR’s February 12, 2014 deadline, a number of smaller buy-side clients did struggle to convince banks to report on their behalf. Many clearing brokers retorted delegated reporting of OTC and ETD instruments had limited – if any – commercial upside and a lot of liability on the downside.

Unlike Dodd-Frank, EMIR does not permit for single side reporting and requires both counterparties to a derivatives transaction to report. While EMIR also states clearly that managers cannot absolve themselves of the liability and responsibility of accurate reporting, a number of clearing brokers simply did not want to incur the added legal risk.

Read more: COO Connect

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