With the latest European Market Infrastructure Regulation (EMIR) deadline passing earlier this week on the 11th of August, Bloomberg Brief have published a special report on the continuous challenges and questions posed by the regulations compliance procedures. Emily Cates (Specialist in Operational Processing, Rule Financial) highlights where the three greatest challenges have occurred and why there is still some uncertainty concerning the EMIR compliance process.
The Bloomberg Brief report explores lessons learned from the first EMIR reporting phase, which came into effect on the 12th of February this year, and looks ahead to the newest phase of compliance where newly reported data will tell regulators about the bigger picture of the derivative market in the European Union.
Offering a key industry perspective, Emily spoke of the three main areas where EMIR compliance has proved to be most challenging. "Unique trade identifier agreement and exchange between counterparties, the management of the reconciliation process between counterparties and trade repositories" and finally the "Product and counterparty classification under EMIR."
In addition Emily speaks of the uncertainty surrounding the next phase of EMIR implementation. "It is a short step to September and the first sight of the regulatory technical standards for the central clearing mandate, with the subsequent product on-boarding and standardisation challenges this will inevitably bring."