ITALY: CONSOB Issues Warning on Reporting Obligations in Respect of Derivatives

Monday June 12 2017

COBSOB has published the main points of attention that emerged as a result of the supervisory activity carried out on data reported to trade repositories by counterparties to derivative contracts (Notice of May 22 2017).

The EMIR Regulation (European Markets Infrastructure Regulation) requires counterparties to derivative contracts to report all concluded, amended or terminated derivative contracts in order to reinforce the transparency of derivatives markets and to provide the competent Authorities with all useful data and information for performing their respective supervisory functions.

CONSOB has highlighted the following points:

• The requirement for the delegating party, in the event of delegated reporting, to be informed of the outcome of the reporting carried out on their behalf, as the party responsible for the reports made;
• The importance of taking into account the validation rules of the reports published on the ESMA website (the supervisory authority for European markets) and the need to constantly monitor the outcome of the reports in order to ensure prompt correction of any errors;
• The requirement to agree upon the common data of the reports with the counterparty in order to enable reconciliation of the reports;
• The necessity to correctly report the purpose of the concluded derivative contract and to verify coherence of the report with the qualification of the derivative contract in the context of the internal monitoring systems of the clearing threshold.

CONSOB will continue to monitor the degree of compliance of the reports with the provisions of the EMIR and will enforce its powers in the event of infringement.

Click on the link above for further details.