The UK EMIR Delegated Reporting Agreement: What You Need to Know
The European Market Infrastructure Regulation (EMIR) was introduced in 2012 to regulate over-the-counter (OTC) derivatives trading in the European Union (EU). The regulation requires all counterparties to report their OTC derivative trades to a registered trade repository.
In the UK, the Financial Conduct Authority (FCA) is the designated supervisory authority for EMIR. The FCA has established a delegated reporting regime, which enables firms to delegate their reporting obligations to third-party service providers.
The UK EMIR Delegated Reporting Agreement (DRA) is a legally-binding agreement between a firm and its chosen delegated reporting provider. The agreement sets out the terms and conditions of the delegation, including the scope of the reporting obligations and the responsibilities of each party.
The DRA also sets out the requirements for data quality and accuracy, as well as the procedures for resolving any disputes or errors that may arise. The FCA requires firms to ensure that their delegated reporting providers comply with all the relevant EMIR requirements and standards.
The benefits of using a delegated reporting provider include cost savings, reduced regulatory burdens, and the ability to focus on core business activities. Firms that use a delegated reporting provider can also benefit from their expertise and experience in reporting and regulatory compliance.
However, firms must be careful when choosing a delegated reporting provider. They must ensure that the provider has the necessary expertise, resources, and systems to meet all the reporting requirements and standards. They must also conduct due diligence to ensure that the provider is financially stable and has a good reputation.
In summary, the UK EMIR Delegated Reporting Agreement is an important tool for firms that want to delegate their reporting obligations to third-party service providers. The agreement sets out the terms and conditions of the delegation, as well as the requirements for data quality and accuracy. Firms that use a delegated reporting provider can benefit from cost savings, reduced regulatory burdens, and the ability to focus on core business activities. However, they must be careful when choosing a provider and ensure that the provider complies with all the relevant EMIR requirements and standards.
