New Q&A Document published by ESMA

ESMA published a new Q&A document on August 5, 2013.

The Q&A document covers general, OTC, CCP and TR related questions and a few additional aspects have been added or were modified, which are of relevance to corporations (below the clearing threshold), e.g.:

When NFCs use portfolio or macro hedging, how should they demonstrate compliance with the hedging definition;

Clarifications on risk mitigation techniques for NFC-, i.e. timely confirmation, portfolio reconciliation & compression and dispute resolution;

Clarifications on „field“ level for reporting to TR’s;

Clarifications regarding the Legal Identifier (LEI) for branches/desks;

Still no endorsement by ESMA for any framework related to the Unique Product Identifier (UPI) and Unique Trade Identifier (UTI) - the interim taxonomy for the UPI and bilateral agreements for the UTI prevail;

Confirmed: reporting obligation for intragroup trades;

For more details see ESMA's updated Q&A document or contact the team of EMIR-ate, emirate@treamo.com