The FCA and Bank of England have launched a joint consultation on changes to reporting requirements, procedures for data quality and registration of Trade Repositories under UK EMIR.

The FCA and Bank of England have launched a joint consultation on changes to reporting requirements, procedures for data quality and registration of Trade Repositories under UK EMIR. This would be delivered by amending the relevant onshored Technical Standards and introducing new rules for Trade Repositories.

Why they are consulting

Their proposals aim to align the UK derivatives reporting framework with international guidance from the Committee on Payments and Market Infrastructures and International Organization of Securities Commissions (CPMI-IOSCO) to ensure a more globally consistent data set. This will enable authorities to better monitor for systemic and financial stability risk.

They are also proposing measures for mandatory delegated reporting requirements, counterparty notifications and reconciliations processes and the use of XML schemas and global identifiers. These proposals aim to provide clarity to counterparties and Trade Repositories, including where there are discrepancies on how certain data fields are reported.

The FCA is also proposing new rules for TRs on the registration and reconciliation processes, to streamline the process for registration.

Who this applies to

The proposals in this CP apply to:

• Counterparties in scope of the reporting requirements under UK EMIR
• TRs registered, or recognised, under UK EMIR
• Third party service providers who offer reporting services to counterparties subject to UK reporting under EMIR
• They may also be of interest to trade associations, law firms and consultancy firms and be relevant to authorities in other G20 jurisdictions who are implementing, or considering, similar changes to their derivatives reporting regimes.

Next steps

The BoE & FCA want to know what you think. Their consultation is open for three months, closing on 17 February 2022. The full PDF is attached below or available on the BoE website here.