FAQs | NatWest Markets



FAQs


The following are a selection of frequently asked questions in relation to EMIR trade reporting.

What is changing in EMIR II on 1 November 2017?

The European regulator ESMA has mandated that from 1 November 2017 additional information is supplied on EMIR Trade Reporting messages, and more stringent validation rules are applied to existing information. Where messages do not meet these new standards they will be rejected by the trade repositories.

 

Notable among the changes is that it is now mandatory to provide a Legal Entity Identifier (LEI) on all trades submitted.  An LEI is a unique identifier for a legal entity that may be obtained from one of a number of authorised 3rd party providers (more info on LEIs).  There are also changes to handling of package trades (a trade priced as one transaction but made up of multiple trades), new values for the Corporate Sector Code for NFC-s, reporting of IM & VM in collateral reporting, new rules around UTIs, and various other changes across the different asset classes.  Full details of changes on ESMA website.

 

"EMIR II" in this context refers to the amended Regulatory Technical Standards (RTS) 2017/104 and Implementing Technical Standards (ITS) 2017/105 concerning changes to EMIR Trade reporting that was published in Official Journal on 21 January 2017, and live from 1 November 2017.  There are other changes to EMIR under discussion within the EC at the moment as a result of the EMIR Review published in May 2017, which are also sometimes referred to as "EMIR II". 

 

What is trade reporting and who is impacted?

Trade reporting is a requirement of the European Markets Infrastructure Regulations (or EMIR). Under the trade reporting rules any entity that is incorporated in the European Union (EU), including their overseas branches, and transacts derivatives is required to report the details of those transactions to an authorised Trade Repository (TR).

 

Generally, non-EU subsidiaries of EU incorporated entities are not subject to the reporting requirements.

What is delegated trade reporting and how does it work?

The rules require both parties to a transaction to report their side of the transaction; they also allow for one party to delegate their reporting to the other party involved in the transaction.

 

One benefit of this approach is that entities do not need to set up complicated and costly infrastructure to report their side of the trade.

Which transactions will be covered under the NWM’s trade reporting service?

Initially our service will be limited to the reporting of your over-the-counter (OTC) and exchange traded derivatives transactions with NatWest Markets Plc, NatWest plc or NatWest Markets N.V., excluding equity derivatives transactions.

 

Under the service we will report all new transactions between us, as well as any back loaded and back-reported transactions.

How much does the NWM reporting service cost?

Currently, we are offering our reporting service for free.

What information must I provide to NWM to register for the service?

During the registration process we will ask you for information that relates to the Counterparty Data fields, including:

 

·         Your Legal Entity Identifier (LEI) or Pre LEI, or BIC

·         Your counterparty classification under EMIR (i.e. Financial Counterparty or Non-Financial Counterparty)

·         Representation as to whether or not you are above the clearing thresholds

·         Corporate sector code if the client is classified as FC

·         Information on your trading capacity i.e. are you Agent or Principal in your trades with us.

·         Product detail for which setup to be enable

 

Docs to be provided Mandatorily to enable DTR

 

·         EMIR Delegate Trade Reporting Agreement(Annexure 1&3)

·         EMIR registration form

·         List of Signatories (Applicable for Non UK client)

 

How long does the registration process take?

We will endeavour to set you up as quickly as possible once we have received all your information and the signed Terms and Conditions of Use, however the time it takes to on-board you will be dependent on the number of entities you wish to register and the volume of applications we are processing at the time.

How will I know when I am registered and NWM has started to report on my behalf?

We will notify you via email when we have completed your application and are in a position to report your transactions for you. If we encounter any issues with your application we will notify you as soon as we can.

Further information

For further information please contact EMIRRegulation@Natwestmarkets.com

 

Disclaimer

No representation, warranty, or assurance of any kind, express or implied, is made as to the accuracy or completeness of the information contained in this document and no member of the RBS Group accepts any obligation to any recipient to update or correct any information contained herein. The information in this document is published for information purposes only and does not constitute an analysis of all potentially material issues. Views expressed herein are not intended to be and should not be viewed as advice or as a recommendation. You should take independent advice in respect of issues that are of concern to you.

NatWest Markets Plc registered in Scotland No. 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NatWest Markets N.V. is authorised and regulated by De Nederlandsche Bank and the Autoriteit Financiële Markten. It has its seat at Amsterdam, the Netherlands, and is registered in the Commercial Register under 33002587. Registered Office: Claude Debussylaan 94, Amsterdam, The Netherlands. NatWest Markets Plc is in certain jurisdictions an authorised agent of NatWest Markets N.V. and NatWest Markets N.V. is in certain jurisdictions an authorised agent of NatWest Markets Plc.

In Hong Kong, NatWest Markets Plc and NatWest Markets N.V. are authorised and regulated by the Hong Kong Monetary Authority and the Hong Kong Securities and Futures Commission. In Singapore, NatWest Markets Plc Singapore branch [UEN: S85FC3595J] is authorised and regulated by the Monetary Authority of Singapore. In Japan, NatWest Markets Securities Japan Limited Tokyo branch [Kanto Financial bureau (Kin-sho) No.202] is authorised and regulated by the Japan Financial Services Agency. In Australia, NatWest Markets Plc is exempt from the requirement to hold an Australian financial services license in respect of the financial services it provides, and it is authorised by the PRA and regulated by the FCA and PRA under UK laws, which differ from Australian laws. The financial instruments described in this document are made in compliance with an applicable exemption from the registration requirements of the US Securities Act of 1933. In the United States, securities activities are undertaken by NatWest Markets Securities Inc., a FINRA registered broker-deal (http://www.finra.org), a SIPC member (www.sipc.org) and a wholly owned indirect subsidiary of NatWest Markets Plc.

 

Further information

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