[ESMA12-2121844265-3173 ] Final report on Guidelines on position calculation under EMIR

ESMA published its Final report on Guidelines on position calculation under EMIR. This report presents proposed updates to the existing ESMA Guidelines on position calculation under EMIR Refit standards.
The primary objective of these guidelines is to offer clarity regarding position calculations, scope of data, and methodologies in the context of the new EMIR Refit standards.
The guidelines that will come into effect from 28 October 2024, following the repeal of existing guidelines on 29 April 2024. The guidelines primarily apply to TRs registered or recognized by ESMA.
During the public consultation (eventid=20503), ESMA presented three variants for calculating positions during the EMIR Refit transition period. Stakeholder feedback indicated a preference for delaying the implementation until after the transition period (Alternative C), citing concerns about data quality and the potential need for temporary solutions during the transition.
ESMA also proposed a methodology to identify whether a reporting counterparty is the ‚Buyer‘ or ‚Seller‘ of a derivative contract for consistent aggregation. This methodology received general agreement, with most respondents supporting the proposal, while suggestions for distinct metrics for Buyer/Seller and Make/Take were rejected due to added complexity.
The report concludes by addressing concerns about the complexity and increased size of position reports resulting from the addition of new EMIR Refit fields. ESMA emphasizes the benefits of expanding the position report to facilitate authorities in performing their duties, leveraging advancements in technology and upgraded IT infrastructure.