22 novembre 2021

Isda Emir Delegated Reporting Agreement

Posted by under: Non classé .

As global financial markets continue to evolve, regulatory compliance is becoming increasingly important. One important aspect of this compliance is the reporting of derivative trades. In the European Union, this is governed by the European Market Infrastructure Regulation (EMIR).

Under EMIR, market participants are required to report certain details about their derivative trades to an approved trade repository. However, not all market participants are required to report directly to the repository. Instead, they can use a delegated reporting agreement (DRA).

A delegated reporting agreement allows a third party to report the details of a trade on behalf of a market participant. This enables smaller market participants to benefit from the efficiencies of central clearing without needing to invest in the necessary infrastructure to directly report their trades.

ISDA (the International Swaps and Derivatives Association) has created a standard DRA that market participants can use. The ISDA EMIR delegated reporting agreement includes all of the necessary terms and conditions for the parties involved to comply with EMIR reporting requirements.

One key element of the ISDA EMIR delegated reporting agreement is the provision for indemnification. This means that the party reporting the trade on behalf of the market participant takes on liability for any errors or omissions in the reporting. This can provide reassurance to market participants that their reporting obligations are being met.

It is important for market participants to carefully review and negotiate the terms of any delegated reporting agreement they enter into. This is because the agreement will govern the reporting of their derivative trades to the trade repository. Any errors or omissions in the reporting could lead to regulatory penalties or reputational damage.

In conclusion, the ISDA EMIR delegated reporting agreement is a useful tool for market participants to comply with EMIR reporting requirements. It allows smaller market participants to benefit from the efficiencies of central clearing without needing to invest in the necessary infrastructure to directly report their trades. However, it is important for market participants to carefully review and negotiate the terms of any delegated reporting agreement they enter into to ensure compliance with regulatory requirements.

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