ESMA consults on position calculations for Trade Repositories

The European Securities and Markets Authority (ESMA) has launched a consultation on proposed amendments to its Guidelines for Trade Repositories (TRs) on position calculation under the European Market Infrastructure Regulation (EMIR). The aim is to enhance consistency of position calculation across TRs under EMIR Refit standards by focusing on the scope of data to be used, the time of calculation, and the calculation methodologies.
The Guidelines are intended for TRs to ensure they calculate positions in derivatives in a harmonised manner and in line with the revised technical standards under EMIR Refit. The amended Guidelines will also address how continuity should be ensured by TRs during the EMIR Refit transition period when pre- and post-Refit data will coexist.
ESMA is seeking input from market participants, particularly TRs and authorities with access to EMIR data, to ensure that high-quality position data is available for assessing systemic risks to financial stability. The consultation paper outlines proposed changes to the existing Guidelines, including the addition of certain data fields and how they should be calculated by TRs before providing data to relevant authorities.
+ Section 2 contains the list of legislative references, abbreviations, and definitions.
+ Section 3 explains the scope and purpose of these Guidelines.
+ Section 4 explains the necessary changes proposed for updating the existing Guidelines.
+ Relevant tables, questions related to the consultation paper, and the consolidated and amended Guidelines are included in Annex I, Annex II, and Annex III, respectively.
EMIR is a regulation designed to improve the functioning of the over-the-counter (OTC) derivatives market in the European Union (EU) by increasing transparency and reducing counterparty credit risk. The regulation requires OTC derivatives to be reported to TRs, which are responsible for ensuring the accuracy and completeness of the reported data. TRs are also required to calculate and report aggregate positions on the contracts reported to them regularly and in an easily accessible way. The proposed amendments to the Guidelines aim to ensure that TRs calculate positions in a consistent and harmonised manner, providing high-quality position data for assessing systemic risks to financial stability.