Thousands of companies were stuck in queues when EMIR took effect, some TRs were overwhelmed, and over half of the one-sided trade reports filed so far cannot be matched up with the second side of the transaction. For ESMA official Petrenko, however, EMIR's start was satisfactory.
Speaking at the annual meeting of the International Swaps and Derivatives Association in Munich, Olga Petrenko, market integrity officer with ESMA, said problems had been expected and stressed the vast amount of work required by the industry. "Given the short time frame, reporting was done pretty well. In the last 17 months we've managed to come up with implementing measures and the industry was able to digest those requirements, to accommodate the systems and stand ready to submit the reports", she said. "The experience so far was satisfactory rather than the other way around", Petrenko added.
Derivative users were required by regulators to start reporting all over-the-counter swaps and exchange-traded derivatives, as well as backloading some data for existing portfolios, just 90 days after regulators authorised the first European trade repositories in November last year. But when the February 12 deadline arrived, some users of the repository run by the Depository Trust & Clearing Corporation were unable to report – victims of a backlog – while the data submitted by those that made it through the door was enough to overwhelm other parts of the service. Tens of thousands of other entities had left their preparations too late to be caught in either trap. Some of the firms that issue pre-legal entity identifiers (LEIs) – the unique tags that every market participant requires in order to report – say they expect to be handling applications until at least the middle of the year.
Full article (subscription)
© Risk.net
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article