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  • EU Authority Updates Statements on Reporting Obligations Post-Brexit Transitional Period
    11/10/2020
    The European Securities and Markets Authority has published updated statements regarding the end of the Brexit transition period on December 31, 2020. The updated statements are:
     
    1. Statement on issues affecting reporting under the European Market Infrastructure Regulation and the Securities Financing Transactions Regulation. This statement updates the statement issued by ESMA on February 1, 2019 regarding the reporting obligation under EMIR. Other than to change the dates to account for a no-deal not occurring on March 29, 2019, ESMA has added a clarification that, from December 31, 2020, U.K. Financial Counterparties will no longer be required to report derivatives entered into with EU non-financial counterparties. From January 1, 2021, EU NFCs must report derivatives entered into with U.K. FCs, in the absence of any equivalence decision for the U.K.
    With regards to reporting under EU SFTR, ESMA's statement clarifies that, from January 1, 2021, EU branches of U.K. counterparties will be treated as EU branches of a third-country counterparty. U.K. branches of EU counterparties will be subject to the requirements as they apply to EU counterparties. Among other things, the statement confirms that:
     
    • EU counterparties and EU branches of third-country entities should ensure continuous reporting to an EU-registered or recognized trade repository; and
    • U.K. counterparties and U.K. branches of third-country entities are not expected to report to EU trade repositories any SFT concluded after December 31, 2020, including SFTs rejected as of December 31, 2020 and amendments to SFTs concluded before December 31, 2020.

    2. Statement on the use of U.K. data in ESMA databases and the annual ancillary activity calculations under the Markets in Financial Instruments package. This statement updates previous statements issued by ESMA regarding these topics. ESMA confirms that from January 1, 2021, the U.K. Financial Conduct Authority will no longer send data to ESMA and will no longer have access to ESMA's IT applications and databases. The statement sets out details regarding ESMA's approach to publication by ESMA of data under MiFID II and MiFIR, namely the Financial Instruments Reference Database, the Financial Instruments Transparency System, the double volume cap mechanism data and the annual ancillary activity calculations.
     
    3. Statement on ESMA's data operational plan. This statement sets out ESMA's operational plan for the databases mentioned in the statement on the use of U.K. data in ESMA databases.

    View details of ESMA's original statement on reporting under EMIR.

    View ESMA's statement on the use of U.K. data in ESMA databases.

    View ESMA's statement on ESMA's data operational plan.

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