Some companies are still struggling to comply with the new reporting requirements for derivatives trades in Europe under the European Market Infrastructure Regulation (EMIR), even though a month has passed since the Feb. 12 deadline.
Companies ran into various problems as they prepared to report trades. Some companies encountered delays in getting the legal entity identifier (LEI) they need to start complying with EMIR or in registering with the trade repositories to which they will report their derivatives trades. Even after companies registered with repositories, some experienced technical problems related to the messages used to notify repositories of their trades.
EMIR is Europe’s version of the derivative reporting rules that Dodd-Frank mandates in the U.S. While Dodd-Frank requires only one party to a trade to report, and exempts end users from its requirements, under EMIR the parties on each side of the trade must report and there is no end-user exemption.
Zubrod, pictured at left, said 1.2 million organizations are subject to EMIR reporting in Europe, versus just 1,000 to 2,000 that must report in the U.S. under Dodd-Frank.