The European Commission's Regulatory Fitness and Performance programme in 2016 (“REFIT”), assessed the existing requirements under EMIR to determine whether they could be simplified and whether certain compliance costs that were considered disproportionate could be eliminated.
This has led to the preparation of a new Regulation (“EMIR REFIT”) that directly amends certain provisions of the existing EMIR Regulation, including reporting obligations.
From 18 June 2020, Financial Counterparties (FC) will be responsible for the reporting of in-scope OTC derivatives contracts with their NFC- counterparties.
Under the current rules, as a Non-Financial Counterparty below the EMIR clearing threshold or “NFC-“, you have been required to report all in-scope Over-The Counter (OTC) derivatives contracts to a Trade Repository.
From 18 June 2020, HSBC will be responsible for the reporting of in-scope OTC contracts where you are trading directly with HSBC and will report the part of the trade that has been transferred to us to be cleared through us. This obligation covers both new trades and reportable lifecycle events for trades that were executed prior to 18 June 2020.