06 August 2013

ESMA proposes delay to reporting date for Exchange Traded Derivatives

ESMA has sent the European Commission a Final Report proposing an amendment to Article 5 of the ITS on reporting, in order to postpone the reporting start date of ETDs by one year. The Commission has three months to decide whether to endorse ESMA's draft ITS.

The amendment relates specifically to the reporting of exchange traded derivatives (ETDs) and proposes postponing the reporting start date by one year.

Article 5 regards the reporting start date of derivatives to trade repositories, however the current dates do not include a specification of ETDs. This specification would be useful as there is a risk currently that reporting of ETDs is not harmonised unless further regulatory guidance is issued. Based on the need to ensure the consistent implementation of EMIR, ESMA considered that guidelines and recommendations should be developed in relation to this issue.

A delay in the reporting date for ETD transactions will allow sufficient time for the development of the relevant guidelines and their implementation by counterparties, trade repositories and regulators.

In accordance with Article 15 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), ESMA should conduct open public consultations on such draft implementing technical standards, analyse the potential related costs and benefits and request the opinion of the ESMA Securities and Markets Stakeholder Group (SMSG) established in accordance with Article 37 of that Regulation. Given the urgency for this Regulation to be adopted in order for the amendment to be effective before the reporting start date, ESMA has not conducted an open public consultation and has not consulted the SMSG. However, ESMA has received a significant number of requests and support from different stakeholders on the need to develop guidelines and recommendations on reporting of ETDs and on the need for counterparties, trade repositories and regulators to have the necessary time  to implement them. Therefore ESMA has already gathered evidence on the need to reschedule the reporting of ETDs and properly analysed the costs and benefits of this delay. In addition, ESMA intends to consult on the actual reporting scenarios and guidance to be issued, which will be included in guidelines and recommendations to be developed.

Next steps

This Final Report is being submitted to the European Commission. The Commission has three months to decide whether to endorse ESMA’s draft implementing technical standards.

Full report

Letter to the European Commission

© ESMA