On the 7th October 2022, the European Parliament and Council approved a set of technical standards emerging from the Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 (“EMIR REFIT”). These technical standards are addressed to those entities which enter into derivative contracts and fall within the scope of Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 (“EMIR”), particularly:
- Financial Counterparties (“FCs”);
- Non-Financial Counterparties (“NFCs”).
The abovementioned entities are required to comply with the changes introduced by the 29th April 2024. With such changes, the entities will be required to report details on their derivative transactions under the new technical standards. Furthermore, they will be required to start upgrading outstanding derivatives to this new format. These changes include the following:
- New data fields;
- Unique Product Identifier to be used when an International Securities Identification Number is not available;
- New ISO 20022 XML Data Format.
The Technical Standards confirm that the eighteen (18) month implementation period starts running twenty (20) days after the entry into force of the technical standards. The said technical standards have been published on the Official Journal of the European Union.
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