ESMA Publishes Updates on EMIR (Refit) and MiFID II MiFIR Q&As


On 28th May, ESMA published updates to some of its Q&As covering EMIR (Refit), MiFID II, and MiFIR.

Of urgent interest was the update to the EMIR Q&A covering the imminent Refit changes around ‘compulsory delegation’.

Specifically, ESMA has added a new Question 54 to the Trade Repository (TR) section, providing clarifications on reporting of OTC derivatives by a financial counterparty (FC) on behalf of a non-financial counterparty below clearing threshold (NFC-) under EMIR Refit.

In particular, the TR Q&A 54 clarifies:

  • What are the reportable details that the NFC- should provide to the FC;
  • How the FC should proceed if the NFC- does not renew its LEI;
  • How the FC should proceed if an NFC that has been classified as an NFC+ changes its status to NFC- and fails to timely inform the FC of this fact;
  • How FC and NFC- should proceed if they report to two different trade repositories.

The updated EMIR Q&A can be found here. The document runs to over 130 pages.

For the convenience of our readers, we have reproduced TR Question 54 and ESMA’s answers in full on the Articles tab of the Updates and Insights section of our website.

Elsewhere, on the same date, ESMA published updates on its MiFID II Q&As on MiFID II Investor Protection, and its Q&As on MiFID II and MiFIR transparency and market structures topics.

The Investor Protection Q&A adds a new question covering “Minor non-monetary benefits” to the Inducements section.

The Transparency and Market Structures Q&A add a new question 9b to the Multilateral & bilateral systems section covering “Authorisation of multilateral systems facilitating the execution of repurchase agreement (repo) transactions”.

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