Navigating the new terrain: how EMIR REFIT impacts financial reporting

Navigating the new terrain: how EMIR REFIT impacts financial reporting

MAP FinTech recently hosted a critical webinar aimed at equipping EMIR-obliged entities with the necessary insights and tools in anticipation of the EMIR REFIT implementation.

With the go-live date looming, MAP FinTech’s dedication to preparing their clientele, which includes investment firms, credit institutions, and funds among others, was evident as they discussed the essential steps and requirements needed for compliant reporting. Key topics included the obligations to provide Trade Repositories (TRs) with LEI numbers and contact emails, highlighting the stringent verification processes set by EMIR.

A significant change under the EMIR REFIT regulations is that TRs are now required to contact delegating parties directly to confirm written authorisation for report submission on their behalf. This new step is crucial as any failure in obtaining explicit confirmation could lead to the rejection of submitted reports. MAP FinTech emphasised the importance of prompt action from all parties involved to ensure compliance. Additionally, for non-financial counterparties, MAP FinTech clarified that self-certification of authorisation suffices, streamlining the process somewhat for these entities.

The webinar also provided an update on the status of Unique Product Identifier (UPI) generation. As reported by ANNA-DSB, the authority responsible for issuing UPIs, approximately 1,148,000 UPI records had been generated by early March 2024. However, a critical observation was that only about 300,000 of these were generated by Market Participants themselves, with the majority being populated by ANNA-DSB. This points to a significant reliance on the authority for UPI generation, underscoring the need for entities to review their derivatives offerings and ensure the availability of necessary UPIs on reporting days.

Furthermore, MAP FinTech shared insights into the extensive testing conducted on the new reporting regime, identifying discrepancies in the XML schema and ESMA’s validation rules that had led to reporting errors. These issues were promptly addressed with TRs and ESMA, who provided interim solutions to mitigate these challenges. The readiness of MAP FinTech’s clientele was also noted, with most having already integrated the additional data required under the new reporting standards and successfully tested in a UAT TR environment.

The webinar concluded with a reminder of the new tools available to assist clients in adapting to EMIR REFIT, including the UPI Link search tool and XMLCon.Vert, which facilitates the conversion of .csv files to the required XML format. As the deadline approaches, the collaborative efforts between MAP FinTech, its clients, and TRs become ever more critical, ensuring a smooth transition and maintaining high standards of data integrity post-launch.

Watch the webinar here.

Keep up with all the latest FinTech news here.

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