Many market participants believed rules written by ESMA provided a 90-day grace period before this trade data had to be backloaded into new trade repositories, under the terms of the European Market Infrastructure Regulation (EMIR).
The UK's Financial Conduct Authority (FCA) also got it wrong. The regulator's website currently tells firms they have 90 days from the start of trade reporting to back-load outstanding trades executed since August 16, 2012 – the date EMIR came into force. The FCA said that it has been seeking clarity from ESMA. A spokesman for ESMA says: "The 90-day delay envisaged in the implementing of technical standards was only applicable to trades that were outstanding on August 16, 2012 and are still outstanding on the reporting start date. There is no delay foreseen in the regulations for trades that were executed after August 16, 2012 and are still outstanding on February 12, 2014."
Elspeth Goodchild, a specialist in delivery and operations management at consultant Rule Financial, says: "It was widely understood that there was a 90-day exemption. Clearly there has been a misinterpretation and ESMA has confirmed it wants the open trades in. I think it will come as a surprise to people and obviously adds to the burden of what they've got to do."
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