Icma Master Regulatory Reporting Agreement
The Master Regulatory Reporting Agreement (MRRA) gives market participants the opportunity to use a single model to help them manage regulatory obligations and provide reporting services under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR). The reporting obligation phase for securities financing transactions (SFTs) begins in April 2020. The AEMF recently released its final report evaluating feedback on its draft guidelines, in accordance with Articles 4 and 12 of the SFTR, as well as the final version of the guidelines to clarify certain provisions of the SFTR and provide practical guidance for the implementation of reports under the SFTR. More information can be found in our SFTR Reporting Customer Note – ESMA Guidelines. The reporting requirement is introduced as follows1: MRRA establishes common conditions for the mandatory and delegated reporting of derivatives transactions under the EMIR Regulation, consistent with the amendments introduced by EMIR Refit and securities financing transactions under the SFTR. The agreement was also drawn up to ensure that these conditions remain effective after Brexit. Margaret Wilkinson, ICMA, `44 20 7213 0323, email@example.com Reporting obligations relating to securities financing transactions (SFT) will be phased in over a nine-month period from 11 April 2020. As with the EMIR Regulation, the data from which companies must begin reporting LTS varies according to their “type of entity,” with investment firms and credit institutions the first to comply with or after the APRIL 11, 20206 SDR. Where one counterparty is within the scope and the other is not, the reporting counterparty may be obliged to obtain information from its counterpart and require the abandonment of confidentiality requirements to ensure that it is able to provide the appropriate information to the central repository. Although companies have already entered into agreements with their counterparties for this purpose, MRRA provides an overview of reporting obligations/modifications applicable to the SFTR and EMIR; A summary of the expected content of the agreement; An overview of the proposed approach; 1 Note that the date on which the reporting requirement applies is technical, i.e.
the eleventh day of each month indicated. However, as some of this data falls on non-professional days, reports are reported in practice live, as noted above. The Association of European Financial Markets (AFME), Future Industry Association (FIA), International Capital Market Association (ICMA), International Swaps and Derivatives Association, Inc. (ISDA) and the International Securities Lending Association (ISLA) have published a new agreement to facilitate reporting on various regulatory systems in the European Union. While the existing reporting agreement dealt with the possibility of a derivative instrument delegating its EMIR reporting obligations, the EMIR-Refit Regulation and the SFTR require that, if one of the counterparties of the transaction in question is a financial consideration (FC) and the other part NFC4, the CF is responsible for its own, its counterparty and legal liability, and to ensure the accuracy of the data. The modular approach of the MRRA allows contracting parties to agree on different annexes (and to add new regulatory deadlines) to meet their requirements, whether mandatory or delegated. In general, each counterparty of the transaction, once it is gradually associated with the communication, is required to disclose the details of the SFT concerned. However, there are a number of exceptions: AFME, FIA, ICMA, ISDA and ISLA have jointly published a new Master Regulatory Reporting Agreement (MRRA).