Circular on EMIR Refit: consultation on draft Regulatory and Implementing Technical Standards
News    ·   06-04-2020

AUTHOR: Andrew Caruana Scicluna; Giuseppe Gigante

On 2 April 2020, the Malta Financial Services Authority (the “MFSA”) issued a circular in relation to a consultation paper launched by the European Securities and Markets Authority (“ESMA”) on draft Regulatory and Implementing Technical Standards (“RTS” and “ITS” respectively) under the Regulation (EU) 2019/834 (“EMIR Refit”). 

Under EMIR Refit ESMA is empowered to develop draft technical standards. In particular, ESMA has been mandated to develop (i) ITS on reporting of derivatives to the Trade Repositories (“TRs”), (ii) ITS and RTS on registration of TRs, (iii) RTS on the procedures to be applied by the TRs to reconcile and validate the data and (iv) RTS on the publication and provision of data by the TRs to the relevant authorities.

Considering the above mandate, ESMA has issued a consultation paper on 26 March 2020 - addressed to financial and non-financial counterparties of derivatives, central counterparties and TRs falling within the remit of EMIR Refit - which covers the technical standards on reporting requirements, procedures to reconcile and validate the data and access by the relevant authorities under EMIR Refit. Additionally, in the consultation paper ESMA also revises certain aspects of reporting to the TRs in order to align the reporting requirements in the European Union with the global guidance on harmonisation of OTC derivatives data elements reported to TRs (as developed by the Committee on Payments and Market Infrastructures (CPMI) and International Organization of Securities Commissions (IOSCO) working group for the harmonisation of key OTC derivatives data elements).

ESMA’s proposal addresses several aspects related to the enhancement of the quality of the reported derivatives data. In the consultation paper there is, inter alia, a description of methods and arrangements that the counterparties should have in place in the case of mandatory allocation of responsibility for reporting and of the delegation as well as methods and arrangements to ensure the correct reporting. Furthermore, the paper clarifies which data standards should be used in the reporting, explains how reporting of lifecycle events and reporting at position level should be performed and also discusses the level of details that should be reported for derivatives.

The closing date for responses to the consultation paper is 19 June 2020. ESMA will consider the feedback it received to the consultation paper in Q3 2020 and expects to publish the final report and submit the draft technical standards to the European Commission for endorsement in Q4 2020.

A copy of the MFSA’s circular can be obtained by clicking here.

ESMA’s consultation paper can be accessed by clicking here.

Should you require any assistance in regards to EMIR Refit or derivatives queries generally, please contact Andrew Caruana Scicluna ( or Giuseppe Gigante (


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