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ALFI published its response to the ESMA Consultation Paper on the Review of the technical standards on reporting under Article 9 of EMIR.
ALFI agrees that in the case of contracts where the notional, due to the characteristics of the contract, varies over time, the original notional shall be the one valid on the date of conclusion of the contract. The organization is in favour to include the category “other” in derivative class and type descriptions, as it might be necessary to allow the reporting of derivatives with more than one underlying. This could be the case for instance with regard to interest rate –currency swaps, Himalaya options etc. In ALFI’s opinion, it might cause technical problems regarding the mapping of data for some market participants, if the values regarding ETD can only be reported as a positive number.
With regards to the improvement of the data quality of reports, requiring market participants to consider a field for “historical data” besides a field for current data would mean a breach of the principle of proportionality as it puts a strain on market participants which cannot be justified. Additionally, ALFI might be concerned about the timing for the transformation of the key Q & As into technical standards. ALFI believes that a transitional period of at least 6 months should be granted for the entry into force of the technical standards.
Further clarification is required related to the definition of “seller”. ALFI believe that the “seller” should be the Sell-Side meaning credit institutions and investment firms (e.g. broker/dealers) according to the definition of financial counterparties in EMIR. UCITS/AIF management companies should be exempted from the definition of the seller.