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EMIR trade reporting deadline takes effect – but where are the standards? 

August 13, 2014
Elliott Holley, Banking Technology

New European rules that require banks, brokers and clients to report their daily market positions and collateral values to trade repositories came into effect this week. But European regulator ESMA made no clarification about models, leaving the question of how to report up to the market. That could cause problems, market participants have warned.

Under EMIR, a requirement for financial institutions to report details of their OTC derivatives transactions to a trade repository was already introduced in February. The latest deadline adds the obligation to add positions and collateral values, as part of the overall G20 drive to increase transparency in derivatives markets and prevent a rerun of the financial crisis. However, serious questions are being asked about the value of the data now being collected.

“The transparency aspect is interesting, because EMIR doesn’t say what model to use,” said Rob Gray, head of EMEA sales at Dion Global. “They’re just instilling a habit of reporting, and you can do it any way you want. But the trade repositories can’t make head nor tail of the data that has already come in since February, and no one has been able to publish any meaningful figures that make sense of it all. They have a mountain of data they don’t know what to do with. It has achieved nothing.”

Read more: Banking Technology

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