There is a disparity between associations and market participants with regard to the use of a Master Regulatory Reporting Agreement (MRRA) for the European Market Infrastructure Regulation (Emir) and the Declaration of Securities Financing Operations (SFTR). “If you`re a non-financial company that pays under Emir, you`ve already gone through this testing process and this overload and the operational aspect of resourcing to support regulation,” says Catherine Talks, product manager at UnaVista. “If we just stick to the binding regulations, much of this reporting framework becomes obsolete and much more committed to a vision of reconciliation. While you allow a company to report on your behalf, you should cross-reference these reports and make sure you agree with them. In this context, it is particularly important that the unique global transaction identifier – a UTI – be used and shared between the commercial parties. The parties should agree on who should generate the UTI. If there is no such agreement, the regulation describes a cascade model for which would be the producing party. The producing party is required to share the UTI electronically with the equivalent, so that both parties can meet their T-1 reporting obligation. “The Master Regulatory Reporting Agreement (MRRA) used isda/FIA`s initial delegate report agreement as a starting point and extended it to cover the emirs` new mandatory reporting obligations and new reporting obligations under the SFTR. The MRRA is structured to allow users to choose the rules that are relevant to their business relationships,” says Bayley. 3. SFTR provides additional legal protection for reporting delegates who are not included in the emir. SFTR specifies, for example, that a delegate is not considered a violation of a legal or contractual restriction on the disclosure of information.
This legal protection is not available to delegates under the EMIR Regulation and shows that a widespread delegation was expected of the SFTR`s projects. 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). As noted above, an NFC is not required to submit relevant reports when performing an LSC with a CF, as they are submitted by the CF on behalf of the NFC. However, NFC-s who do not perform LFS with a CF must submit reports. Depending on the different configurations available, clients of interactive brokers may not run SFT with a CF and, as a result, Interactive Brokers offers a delegated reporting service to ensure that its clients can report all the SFTFs they perform. Buy-side companies can also cause problems with SFT reports to relevant industry bodies and/or their regulator. Buyback rights should determine whether there is room to delegate reports to their counterparts as quickly as possible. When a transfer is not possible, companies must make arrangements to report to a central repository.
Those who expect their brokers, securities lenders or investment managers to report on their behalf should clarify the position with them directly. Central Repository Registration Plan: The deadline is July 13, 2020: July 2020: Report Phase 1 – 13. July 2020 Investment Companies – Credit Institutions and CSP – CSDs Oct 2020: Report Phase 2 – Insurance, UCITS, FIA – Pensions Jan 2021: Report phase 3 – Report go-live for non-financial companies We can work with clients to extend their reporting obligations and verify the documentation related to their discussion with central repositories.