Principle: In accordance with Article 9 of EMIR, counterparties must ensure that the elements of any derivative contract they have entered into, as well as any modification or termination of the contract, are reported to a registered or recognized trade repository. The reporting requirement applies to OTC derivative contracts as well as listed derivative contracts traded on a regulated market (Exchange Traded Derivatives ("ETD").
- When both counterparties of a transaction belong to the EEA zone, then each of them must report to a trade repository.
- When one of the counterparties is a non-EEA entity, it has no reporting obligation, as this task only applies to the EEA counterparty.
- When both counterparties are non-EEA entities, no obligation is required from them. However, certain local regulations may apply.
Objective: Increase transparency in the derivatives markets.
Deadline: This report is to be made no later than the business day following the conclusion, modification or termination of the contract.
- Counterparties must ensure that the elements of derivative contracts are reported correctly and without duplication;
- Counterparties (FC+, FC- and NFC+) may delegate this reporting obligation (voluntary reporting delegation). However, they remain responsible for any erroneous declaration. As such, they must carry out the necessary checks and verifications and report to their regulator if necessary.
Note: Société Générale has been offering this reporting delegation service since February 12, 2014, if you would like to benefit from it, please contact us.
- Since June 18, 2020, financial counterparties are solely responsible, including legally, for reporting, on behalf of both counterparties, the elements of OTC derivative contracts entered into with a NFC-, as well as the accuracy of the reported elements.
To ensure that the financial counterparty has all the data necessary to satisfy its reporting obligation, the NFC- provides the financial counterparty with those elements of the OTC derivative contracts entered into between them and that the financial counterparty should not reasonably be expected to already have available. The NFC is responsible for ensuring the accuracy of these items.
However, this mandatory delegation does not apply if the NFC- has already invested in a reporting system and chooses to report the elements of OTC derivative contracts to a trade repository.
Note: If you are an EEA NFC- and already a client of the voluntary delegation service offered by Société Générale, you do not have to take any action. We will contact you shortly to update the terms of the EMIR reporting delegation contract. However, if you are not a client of Société Générale's voluntary delegation service and you wish to benefit from this reporting delegation as an EEA NFC-, please contact us as soon as possible.
Data to be reported: The data/information to be provided in the trade repository report is detailed in regulatory and implementing technical standards (Delegated Regulation (EU) No 148/2013 and Implementing Regulation (EU) No 1247/2012). The report has a common part concerning the characteristics of the transaction (common data) and a part relating to each counterparty (counterparty data).
Unique Transaction Identifiers (UTIs): Reports are identified by a unique transaction identifier agreed upon by the counterparties and this UTI is used throughout the life cycle of the transaction.
The means of obtaining a UTI are as follows:
- Société Générale acts as the "Generating Party" and generates the UTI which is then provided to you.
- You are the Generating Party and so you must construct a UTI in such a way that it is unique. You will use it in your declaration to the trade repository and communicate it to your counterparty via the confirmation.
- If you are not a Generating Party and you do not deal with Société Générale, then you will retrieve the UTI from your counterparty's confirmation and will have to update your declaration with this new reference.
International Legal Entity Identifiers (LEI): Counterparties to derivative contracts must be identified in the reports by a LEI. In practice, each counterparty subject to reporting obligations must obtain a LEI from a Local Operating Unit (LOU). In France, INSEE has been designated as the local entity that can assign identifiers for the purposes of the EMIR reporting requirements.
It is the responsibility of each counterparty to ensure that its LEI is correct and duly renewed.