Circular CSSF 23/846 is a CSSF circular, published 1 December 2023. Subject: Application of the Guidelines of the European Securities and Market Authority on reporting under EMIR.
\nLegal basis: Law of 15 March 2016 on OTC derivatives and central counterparties.
\nRelevant for: AIFMs, Central Securities Depositories (CSDs), Credit institutions, E-money institutions, Investment firms, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Other specific authorisations, registrations and information, Part II UCIs, Payment institutions, Pension funds, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS.
\nMain topic: EMIR. Keywords: Central counterparty (CCP), Financial counterparty (FC), Non-financial counterparty (NFC), Risk management, Trade repository (TR).
\nCircular CSSF 23/846 Application of the Guidelines of the European Securities and Markets Authority on reporting under EMIR (ESMA74-362-2281)
\nCircular CSSF 23/846 Application of the Guidelines of the European Securities and Markets Authority on reporting under EMIR (ESMA74-362-2281) To financial and non-financial counterparties to derivatives as defined in Articles 2(8) and 2(9) of EMIR 1 for which the CSSF is the competent authority in accordance with Article 1(2) of the Law of 15 March 2016 on OTC derivatives, central counterparties and trade repositories and amending different laws relating to financial services (hereafter “EMIR Law”)
\nLuxembourg, 1 December 2023 Ladies and Gentlemen, The purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the Guidelines of ESMA on reporting under EMIR (Ref. ESMA74-362-2281) (the “Guidelines”), published on 23 October 2023. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at European level. All entities in scope shall duly comply with them. The Guidelines are issued by ESMA on its own initiative, as per Article 16(1) of ESMA’s regulation, and are related to the application of EMIR reporting obligations in accordance with Article 9 of EMIR and the Trade Repositories’ (“TRs”) obligations under Articles 78 and 81 of EMIR. The Guidelines apply as from 29 April 2024 in the context of the entry into force of the EMIR Refit Reporting Technical Standards 2. The Guidelines fulfil several purposes with regard to the harmonisation and standardisation of reporting under EMIR. This is key to ensure high quality of data necessary for the effective monitoring of systemic risk. Furthermore, increased harmonisation and standardisation of reporting facilitates the containment of costs along the complete reporting chain - the counterparties that report the data, the TRs which put in place the procedures to verify the completeness and correctness of data, and the authorities under Article 81(3) of EMIR which use data for supervisory and regulatory purposes. The Guidelines provide clarifications on the following aspects: a) transition to reporting under the new rules; b) the number of reportable derivatives; c)
\nexemption from intragroup derivatives reporting;
\nRegulation (EU) 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories - European Market Infrastructure Regulation. 2 Commission Delegated Regulation (EU) No 2022/1855 of 10 June 2022. Commission Implementing Regulation (EU) No 2022/1860 of 10 June 2022. Commission Delegated Regulation (EU) No 2022/1858 of 10 June 2022. Commission Delegated Regulation (EU) No 151/2013 of 19 December 2012 as amended by Commission Delegated Regulation (EU) 2022/1856. 1
\nd) delegation of reporting and allocation of responsibility for reporting; e) reporting logic and the population of reporting fields; f)
\nreporting of different types of derivatives;
\ng) ensuring data quality by the counterparties and the TRs; h) construction of the Trade State Report and reconciliation of derivatives by the TRs; i) The
\ndata access. Guidelines
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\nhttps://www.esma.europa.eu/. This circular shall apply to financial and non-financial counterparties to derivatives as defined in Articles 2(8) and 2(9) of EMIR for which the CSSF is the competent authority in accordance with the EMIR Law.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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