Over Half Say They Won’t Be Ready for EMIR Next Week
London – With the 12 February deadline for the European Market Infrastructure Regulation (EMIR) fast approaching, sixty-five percent of respondents to a recent Reval poll expect the European Commission to provide corporates a relief mechanism for compliance, says Reval, a leading global Software-as-a-Service (SaaS) provider of comprehensive and integrated Treasury and Risk Management (TRM) solutions.
“Companies seem to be expecting that they will receive some kind of relief from complying with the EMIR deadline next week,” says Guenther Peer, Regional Vice President, Solutions Consulting EMEA at Reval, and one of the speakers in Reval’s recent webinar, “Checking it Twice: Dodd-Frank and EMIR,” which nearly 300 finance professionals attended. “With SEPA’s extended transition period and the issuance of No-Action relief letters from the CFTC in the U.S., it seems that companies have become accustomed to shifting dates for regulatory compliance. This could be the reason why many companies report that they are not ready to comply with EMIR.”
Fifty-eight percent of respondents in Reval’s poll say that they are either not ready to comply with EMIR or do not expect to be ready for three to four months. In the U.S., the Commodity Futures Trading Commission (CFTC) issued a series of No-Action relief letters for various derivative-related rules coming into effect under the Dodd-Frank Act. Regarding the Single European Payments Area (SEPA) regulation, the European Commission adopted a proposal earlier this month that gives an extra transition period of six months during which payments that differ from the SEPA format can still be accepted.
Under EMIR, financial and non-financial counterparties must report on a daily basis all derivatives, including intragroup transactions, to one of the six registered trade repositories. Aside from the reporting obligation, EMIR requires central clearing for certain classes of over-the-counter derivatives (OTC) derivatives for financial institutions and complex corporates, and the application of risk mitigation techniques for non-cleared transactions. For more information on EMIR contact Reval at [email protected] or visit the ESMA website.