Monday November 20 2017

News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General




On 20th November 2017, the European Securities and Markets Authority (ESMA) updated its Q&A’s on practical questions regarding the European Markets Infrastructure Regulation (EMIR).

 The main change concerns Article 3a of the Commission Implementing Regulation (EU) No 1247/2012.

Article 3a applies to transaction reporting in cross-currency swaps and FX swaps and forwards. The updated answer outlines whether the counterparty receiving the currency which is first when sorted alphabetically by ISO 4217 standard shall be identified as the buyer.

The updated Q&A is listed below:

Question 24.

a) Should the same rule apply to FX futures?

b) In the case of FX swaps and cross-currency swaps, where multiple exchanges of currencies take place, which point in time is relevant for the determination of the buyer and seller?

Answer

a) Yes

b) For both types of products, the relevant point in time for the determination of the buyer and seller should be the far leg, which is closer to the maturity date.

For additional information please click the link above