By Jonathan Watkins.
Reporting mandates for exchange traded derivatives set to
come into effect in February 2014 are unlikely to be extended
by the European Commission, FOWi understands.
The European Securities and Markets Authority (ESMA)
had applied to the European Commission to push the date back
by a year with a lack of clarity still surrounding reporting
According to comments made by European Commissioner,
Patrick Pearson, the February 12 deadline is likely
Speaking to FOWi today, Stewart Macbeth, managing
director, president and CEO, DTCC Deriv/SERVE and DTCC
Derivatives Repository, said: "I moved to a position very
recently that the extension won't be granted by the
"Mainly from conversations over the last week or so and
then yesterday I heard statements of that sort.
"So I think we are looking at listed reporting from
February next year and we think there's a good chance of TRs
being authorised by ESMA in November.
"I did honestly think that the ETD would be delayed but
because we never had the commission confirmation we only had
Emma's statement that ey had asked for the change to their
"We couldn't be certain so we continued our internal
Delay was expected
FOWi reported in July that ESMA had applied for an
extension in order to provide guidance on how market
participants should report exchange traded
According to industry experts, many had been presuming
that the delay would be granted, however now trade
repositories will have to wade through the regulatory
confusion in order to prepare for February 2014.
Chairing a panel at FIA Burgenstock today, Kathleen
Taylor, executive director, Futures and Options Association
(FOA) said: "Everyone assumed this delay for reporting would
"In terms of working how reporting would work they have
been focusing on OTC issues not on ETD, so we
haven’t seen any progress."
Still a lack of clarity
Unlike reforms in the US, European regulations are
requiring exchange traded products to be reported along with
OTC contracts which were mandated to be cleared as a result
of the G20 agreement in Pittsburg.
Europe's financial regulator charged with rolling out
market reforms in line with the G20 mandates has already
delayed reporting requirement for credit default swaps (CDS)
and interest rate swaps (IRS).
The Commission has until November 6 to
formally announce whether it will extend the deadline.
November 7 then represents the earliest day when
TRs will be approved.
Commenting on the confusion surrounding the European
rules, on who and what will be reported Sara Cresswell, EMEA
head of clearing operations at Goldman Sachs, said that the
industry had to make assumptions due to the lack of clarity
"We always knew from late last year there was a problem
with the way the rules have been written," said
"The industry had to make assumptions, given that it
wasn’t clear on what different market
participants would be reporting.
"We had to make assumptions to move forward where we
haven’t had the clarity we need from
Differing from US rules
Daniel Corrigan, head of industry relations and regulatory
compliance, Una Vusta, London Stock Exchange Group, said: "We
do keep asking ESMA, its up to them to say what fields they
require, who should be reporting, what they should be
ESMA will now look to bring more clarity to its
reporting rules in the four month gap before the deadline
The aim is to harmonise data requirements and create
consistency across the post-trade reporting regimes in both
Emir and the Markets in Financial Instrument Directive (Mifid
The obligation will be placed on both counterparties to
the derivatives contract, unlike Dodd-Frank rules in the
Daniel Corrigan, executive director and CEO of European
trade reporting, added that under ESMA's rules, ETDs traded
outside of Europe will count as OTC.
"If ETD was delayed for a year that
won’t include futures and options traded
outside Europe," said Corrigan.
"It’s a problem and it’s
the same definitional problem.
"ETD reporting within Europe on contracts listed
outside is going to be really interesting."