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EMIR: Derivatives transactions reporting to trade repositories becomes effective on 12 February 2014

EMIR: Derivatives transactions reporting to trade repositories becomes effective on 12 February 2014

Legal Alert Wednesday January 22nd, 2014

On 12 February 2014 the duty to report derivatives transactions to trade repositories, envisaged by EMIR, shall enter into force.

Obligation to report
The reporting obligation applies to all derivatives contracts outstanding (in force) on or after 16 August 2012, regardless of their execution date.

  • Contracts entered into after 12 February 2014 should be reported to the trade repository by the end of the business day following the day they were entered into, changed or terminated.
  • Contracts entered into after 16 August 2012 r., outstanding on or after 12 February 2014, should be reported to the trade repository within one day (i.e. on 13 February 2014).
  • Contracts entered into before 16 August 2012 outstanding on 12 February 2014 should be reported to the trade repository within 90 days (i.e. by 13 May 2014).
  • Other derivatives contracts subject to reporting but no longer outstanding on 12 February 2014 should be reported within 3 years (i.e. by 12 February 2017).

Reporting to the trade repository
In order to fulfill its reporting duty the reporting entity must have the status of participant in the repository. A party to the transaction that has delegated the reporting task to its counterparty (which is worth considering when negotiating transaction documentation) is not required to be a participant in the repository. The principles governing the participation in a given trade repository are defined in the regulations of that repository.
Given repositories handle specific classes of derivatives. For example, the following derivatives contracts may be reported to KDPW: commodity derivatives (CO), credit (CR) derivatives, currency derivatives (CU), equity derivatives (EQ), interest rate derivatives (IR) and other derivatives (OT) contracts.

LEI Code
In order to fulfill the duty to report derivatives transactions the reporting entity must obtain a unique LEI code (Legal Entity Identifier) which helps identifying entities entering into transactions in the financial market. LEI code is a global, 20-digit, alpha-numeric and that enables clear and unique identification . The entity in charge of granting LEI codes in Poland is KDPW.

More information on the obligation to report derivatives transactions envisaged by EMIR is available in SK&S legal alert of 18 May 2013, published on our website on 24 May 2013.

 Download pdf version of the alert

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