EMIR trade reporting service FAQs

Trade reporting in the European Union (EU) is a requirement of the European Markets Infrastructure Regulation (or EMIR) and in the United Kingdom (UK)  equivalent legislation is in place (UK EMIR) . Under the trade reporting rules any entity that is incorporated in the EU or the UK, including their overseas branches, and transacts derivatives is required to report the details of those transactions to an authorised Trade Repository (TR).

Generally, non-EU/UK subsidiaries of EU/UK incorporated entities are not subject to the reporting requirements.

Since 1 January 2021 these obligations now apply directly to entities incorporated in the UK under the UK EMIR regime.  For EU/EEA entities their obligations remain the same. With regards to EMIR Refit and clients classified as NFC- please see the EMIR refit section further below for potential impacts.

The rules require both parties to a transaction to report their side of the transaction; they also allow for one party to delegate their reporting to the other party involved in the transaction.

One benefit of this approach is that entities do not need to set up complicated and costly infrastructure to report their side of the trade.

Our service will be limited to the reporting of your over-the-counter (OTC) transactions with NatWest Markets Plc or NatWest Markets N.V., excluding equity derivatives transactions.

Under the service we will report all new transactions between us. Corrective reporting will be limited to new transactions reported by us and any historical transaction not reported by us won’t be supported. 

Clients* are reminded that they remain responsible for compliance with their EMIR reporting requirements even when using our EMIR Trade Reporting Service. This includes, but is not limited to, retaining relevant records (NWM may not be able to provide historic data) and Error Notification to Regulators. Clients are encouraged to regularly review their submissions to the Trade Repository and promptly notify us of any issues to enable us to address them in a timely manner. If issues are not notified promptly to us, we may not be able to correct historic reports due to system limitations or operational reasons. 

(*Note: Where NWM has a Mandatory Reporting obligation, NWM will be the Entity Responsible for Reporting and the relevant NFC- clients don’t need to send a separate regulatory notification for any error or omission).

Currently, we are offering our reporting service for free.

During the registration process we will ask you for information that relates to the Counterparty Data fields, including:

• Your Legal Entity Identifier (LEI).
• Your counterparty classification under EMIR (i.e. Financial Counterparty, Small Financial Counterparty or Non-Financial Counterparty)
• Representation as to whether or not you are above the clearing thresholds
• Corporate sector code if the client is classified as FC
• Product detail for which setup to be enable
• Product detail for which setup to be enable
• Your Reporting Obligation (whether you are required to report under EU or UK EMIR, or both)
• Whether there is an entity legally responsible for reporting on your behalf (known as ERR), this will generally apply where you are a fund, a UCITS or pension scheme.
   

Documents to be provided Mandatorily to enable DTR.

• For Fund Managers: EMIR/UK EMIR Delegated Trade Reporting Agreement
• For Non Fund Managers: EMIR/UK EMIR Delegated Trade Reporting Agreement
• EMIR/UK EMIR Registration form (XLSX)

Please notify us promptly (and no later than 30 days) by email.

We will endeavour to set you up as quickly as possible once we have received all your information and the signed Terms and Conditions of Use, however the time it takes to on-board you will be dependent on the number of entities you wish to register and the volume of applications we are processing at the time.

We will notify you via email when we have completed your application and are in a position to report your transactions for you. If we encounter any issues with your application we will notify you as soon as we can.

EMIR Refit is Regulation (EU) 2019/834 of the European Parliament and of the Council amending Regulation (EU) 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories, published on 28 May 2019 in the Official Journal of the European Union, as may be amended from time to time.

EMIR Refit has moved the responsibility of reporting for clients classified as NFC- to the financial institutions they are trading with. Thus, from 18 June 2020, NWM NV will report the in-scope OTC derivatives when facing a EU/EEA NFC- entity and NatWest Markets Plc will report the in-scope OTC derivatives when facing a UK NFC- entity. You may opt out from mandatory reporting if you wish to do your own reporting, in such case please provide us with 10 working days notice.  

Please note NFC- clients will still need a delegated reporting agreement  for NWM to report on their behalf if they are either:

A EU/EEA NFC- entity facing NatWest Markets Plc   (a UK company)

A UK NFC- entity facing NatWest Markets N.V. (a Netherlands/EU company)

Client needs to reach out to DTCC onboarding team.

If client are onboarded and are struggling to make web uploads or obtain access to the portal, Client can email us for further assistance.

NWM use DTCC as Trade Repository.  Here are the direct URL’s for each region. Once you login successfully and navigate to the below URL’s – please click on “Portal” link to access the details :

• EU EMIR REFIT
  
• UK EMIR (Current production)
• UK EMIR REFIT

If you require further information or assistance on Issues in the trades reported as a part of EMIR delegated reporting service , please email us.

If you require further information or assistance on Pairing or Reconciliation Issues, please email us.

NWM does not provide liquidity in FX Swaps as a single instrument which are identifiable with a unique ISIN, unless it has been pre-agreed with the Counterparty.

NWM provides liquidity in FX Strategies, where two FX Trades get simultaneously executed as a package of two transactions. An FX Strategy can comprise of: (i) two FX Forwards, or (ii) a FX Spot and a FX Forward, or (iii) two FX Spots. It involves a simultaneous execution of two FX Transactions, where the execution of the first leg is dependent upon the execution of the other leg. NWM, when executing a package transaction, may sometimes refer to it as an FX Swap in general communications but such transactions are not identifiable with a single FX Swap ISIN. Also, separate Trade Confirmations are sent for each leg of the package transaction.

Having regard to NWM’s business structure, NWM reports such trades under EMIR and MIFID II Transaction Reporting based on the below criteria:

• Which leg(s) gets reported: Any leg(s) which falls within the definition of FX Spot will not be reported, as such instruments are not reportable. The other leg(s) (i.e., other than a FX Spot) will be reported. When the FX Strategy comprises of two FX Forwards, both the FX Forwards will be reported as two trade reports with a Package Identifier (reflecting them as a single Package). Further, two separate Unique Transaction Identifiers (UTIs) will be reported in the respective trade reports of the two reportable FX Forwards.
• How trade details are reported: The ISIN on the reportable leg will represent a FX Forward ISIN and the CFI Code of a FX Forward is populated in the ‘Product Classification’ (Field 9 of table 2*). Further, the ‘Forward exchange rate’ (Field 114 of table 2*) represents the outright forward rate agreed for such a forward leg while the Spread between the near & the far leg is populated in the ‘Package Transaction Spread’ (Field 111 of table 2*).

Using the above approach, NWM believes this will ensure better Pairing & Matching of the Trade Reports with its counterparties, as required under EU EMIR & UK EMIR Regulation.

*Refer Regulatory technical standards on reporting under EMIR REFIT.