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The Report, covering the period from January to December 2018, focuses on NCAs supervisory measures and enforcement actions, their powers and the interaction between NCAs and market participants, when monitoring compliance with the following EMIR requirements:
the clearing obligation for certain OTC derivatives (Art. 4 EMIR);
the reporting obligation of derivative transactions to TRs (Art. 9 EMIR);
requirements for non-financial counterparties (Art. 10 EMIR); and
risk mitigation techniques for non-cleared OTC derivatives (Art. 11 EMIR).
The report found that supervisory practices have evolved in relation to compliance with EMIR requirements shifting from an initial focus on raising awareness to greater efforts towards making better use of the information available for supervisory purposes.
Challenges
However, the report also identifies areas of supervisory challenge which might benefit from coordinated approaches, notably related to the supervision of NFCs in relation to the clearing obligation and on how to identify excessive reliance on the exception applied to hedging positions. There is also room for closer analysis and cooperation between NCAs in areas such as supervision of counterparties below the clearing threshold and of third country entities trading in OTC derivatives with significant impact in the European Union.