Esma pushes for one-year delay to ETD reporting

Esma pushes for one-year delay to ETD reporting

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 specification’s regarding the start of ETD reporting.

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 Esma’s draft implementing technical standards.