Upcoming changes to EMIR Trade Repository reporting
Please find below information on upcoming changes to the EMIR TR reporting, to be launched on 9 June 2014. Information will also be published on the TR web, along with the updated version of the TR handbook, please see
http://www.nasdaqomx.com/europeanclearing/TR-reporting
Position reporting
On 9 June, NASDAQ OMX Clearing will switch to position reporting for all exchange traded derivatives (ETD) and most OTC contracts. The switch to position reporting is due to the European industry agreeing with the central authority ESMA that position reporting is more appropriate for ETD contracts and is also a prerequisite for reporting collateral and mark-to-market values, mandated from August 2014.
Members and counterparties to NASDAQ OMX Clearing are encouraged to also switch to position reporting on 9 June, in order to ensure consistent reporting of derivative contracts, in accordance with the EMIR regulation. NASDAQ OMX Clearing will provide a test environment, support and an updated EMIR report in order to make this switch as smooth as possible.
Please see below for details of how the position reporting will work after 9 June:
- NASDAQ OMX Clearing will report positions for ETD and most OTC contracts (excluding interest rate swaps and TM FRAs). All forward contracts will be reported on position level.
- New trades will only be reported in their end of day state.
- A compression event will be reported for each new trade, indicating that the trade has reached its end-of-life state.
- Updates to a trade on T+1 or later will be reported as new trades updating the existing position.
On the first day of position reporting, i.e. 9 June, a compression event will be sent for each active trade that was previously reported on trade level.
Change of UTI format and effects on positions back-loaded in February
The current position UTI format will be amended in order to add two digits (year). This is being done in order to avoid issues with re-occurring instrument series names. The change will be implemented on 9 June.
In order to create consistency and enable possible updates to positions that were back-loaded in February, these positions need to be cancelled and re-entered using the new UTI format. In order to facilitate this effort, NASDAQ OMX Clearing will provide a list of the cancelled and re-entered position reports in the EMIR Trade report.
Details of how to change the UTI format of back-loaded positions:
- Identify the expiration year for the instrument series (e.g. 2016)
- Replace the two last digits (position 51-52) of the old position UTI with the two last digits of the expiration year.
- Example
- Old Position UTI: 000CSTO000MEMBRIDACCOUNTIDxINSTRUMENTNAMExxxxxxxxxxx
- New Position UTI: 000CSTO000MEMBRIDACCOUNTIDxINSTRUMENTNAMExxxxxxxxxYY (where “YY” is the expiration year of the instrument series “INSTRUMENTNAME”)
Access to test system
The changes to the reporting will be available for test in the Genium INET Test System 4 from 14 May.
Please contact Member Services for queries regarding access and login IDs. MS.GeniumINET@nasdaqomx.com , Tel: +46 8 405 6660.
For technical support please contact technicalsupport@nasdaqomx.com , Tel: +46 8 405 6750.
Correction of strip trades
Trades with instrument group type “strip”, where contracts with a maturity of more than one month are stripped and broken down into contracts of one month each, have been reported both as the original contract but also the stripped monthly trades. This will be corrected and from 28 April only the stripped contracts will be reported, i.e. the original contracts will no longer be reported. This issue only affects Freight, Fuel oil, Seafood and Iron Ore contracts with durations of year, half year and quarter.
NASDAQ OMX Clearing will cancel trade reports previously submitted, for original contracts that have subsequently been stripped, in order to ensure that the correct view is held by the trade repository. Members that have used the EMIR trade report provided by NASDAQ OMX Clearing and also reported both original contracts and stripped contracts, are recommended to also cancel the trade reports for the original contracts.
Reporting of mark-to-market and collateral values
NASDAQ OMX Clearing intends to start reporting mark-to-market and collateral values from 9 June, in preparation for the mandatory start date in August.
Customers of the NASDAQ OMX EMIR TR reporting service
Customers of the NASDAQ OMX EMIR TR reporting service are not affected by the above changes, i.e. NASDAQ OMX will implement the changes in the service provided. There is no need for such customers to take any further action.
NASDAQ OMX Clearing
