On 7 November 2019, the FCA published an updated statement on the reporting of derivatives under the UK EMIR regime in a no-deal scenario.
The statement explains that in the event that the UK withdraws from the EU without an agreed deal on 31 January 2020, UK reporting counterparties and trade repositories (TRs) should use the UK EMIR validation rules when submitting derivative transactions entered into from 11:00pm on 31 January 2020 onwards.
The FCA will be responsible for the registration and ongoing supervision of TRs operating in the UK post-Brexit. Counterparties operating in the UK will be required to report details of their derivative trades to an FCA-registered TR. The FCA will also require UK TRs to provide UK authorities access to data reported to them by UK counterparties.
The FCA has decided not to grant transitional relief in relation to these requirements.
The statement goes on to explain:
- the background to the UK EMIR validation rules;
- the changes for TRs and UK counterparties;
- the reporting of new and outstanding trades under the UK EMIR reporting regime by counterparties in scope;
- historic EMIR data;
- inter-TR reconciliation;
- data access for authorities;
- suspension of the reporting requirements; and
- EMIR REFIT.
The FCA states that if UK counterparties, or other relevant stakeholders, have questions not answered by the statement they should contact the regulator at EMIR@fca.org.uk