Why are we consulting?
The derivatives data reported under Article 9 of the UK European Market Infrastructure Regulation (UK EMIR) provides transparency to us and the Financial Conduct Authority (FCA) of the UK derivatives market for systemic risk and financial stability monitoring purposes. It is important the data to which we have access is complete, accurate, reported consistently and on time to ensure we can fulfil our financial stability objectives and to promote the safety and soundness of regulated firms.
We are consulting jointly with the FCA on guidance to support implementation of the amended UK EMIR reporting requirements that will go-live on 30 September 2024. The draft guidance is in the form of Questions and Answers (Q&As), grouped into relevant topics.
Draft Q&As
The draft Q&As we are consulting on have been informed by discussions with trade associations, reporting counterparties, trade repositories (TRs) and central counterparties (CCPs) via the UK EMIR Reporting Industry Engagement Group. This group, co-chaired by us and the FCA, provides a forum for discussing UK EMIR reporting issues with industry to ensure consistent reporting.
In developing these Q&As, the Bank of England (the Bank) has considered its objective to protect and enhance the financial stability of the UK, its secondary objective to facilitate innovation in the provision of FMI services and other statutory obligations.
The Q&As are divided up into the following topics:
1. Transitional Arrangements
2. Reconciliations
3. Errors and Omissions
4. Derivative Identifiers
5. Action and Events
6. Venues
7. Exchange Traded Derivatives
8. Margin and Collateral
9. Clearing
10. Position Level Reporting
11. Asset Class and Product Specific
Our first consultation, covering topics 1 to 5, was finalised on 2 May 2024, In this second consultation, we are covering topics 6 to 11, as well as any additional questions which have arisen under the earlier topics.
In certain circumstances, the draft Q&As also require a corresponding change to the UK EMIR Validation Rules (applicable from 30 September 2024). As a result, we are also consulting on those changes, and we indicate within the relevant Q&A where such a change is proposed. We do not generally consult on Validation Rules. On this occasion however, and on an exceptional basis, we invite participants to provide any feedback.
Next steps
The consultation closed on 12 June 2024. We are now considering the feedback received.
After considering responses, the final Q&As will be published on our respective websites later in summer 2024.