Consultant , Amsterdam, the Netherlands
European regulation is once again shaking things up with the recent full EMIR Regulatory Fitness and Performance Programme (REFIT) which standardizes global reporting requirements. The aim of this regulation is to improve the quality of reporting and the effectiveness of supervision which – in turn – will reduce both costs and the reporting burden for affected parties. However, the greatest impact is likely to be on parties’ outdated systems and architecture – which increases the consequences, complexity and possible costs of the implementation.
On 20 December 2022, the European Securities and Markets Authority (ESMA) published its final report on EMIR. This report finalizes the EMIR technical standards. Parties must now prepare for EMIR’s 2024 deadline as the new standards will enter into application on 29 April 2024 and introduce major changes.
Here are the most significant changes:
Because many firms are reporting directly to a trade repository in formats such as CSV or fPML, the new ISO format will be a challenge to implement.
Here are some key actions financial entities should consider to ensure compliance with the EMIR REFIT:
In summary, financial entities must be proactive in their approach to complying with the EMIR REFIT. By taking a strategic and proactive approach, financial entities can ensure that they are prepared for the updated regulation and mitigate the risk of non-compliance.
Streamlined reporting -- Synechron's team of experts includes regulatory analysts who can evaluate the regulations and their implementation requirements, functional business analysts who can translate business requirements into technical specifications, and technology experts who can develop applications for regulatory transaction reporting and streamline system processes.