The European Securities and Markets Authority (Esma) has sent
the European Commission a final report proposing pushing back
the start of exchange traded derivatives (ETD) reporting by one
year to 2015 writes Nicola Tavendale.
It follows mounting pressure from industry participants who
claim there is a fundamental lack of clarity surrounding the
technical implementation of ETD reporting ahead of the already
revised January 2014 deadline.
The proposed amendment refers to article 5 of the Commission
Implementing Regulation concerning the reporting start date of
derivatives to trade repositories.
But the format and frequency guidelines were formulated with
OTC derivative reporting in mind, and do not include any
specifications regarding the start of ETD
Devil in the detail
Following market consultation, Esma said it believes this
specification would be useful as there is currently a risk that
reporting of ETDs would not be 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, Esma said
in the report.
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.
The European Commission now has three months to decide whether
to endorse Esmas draft implementing technical