Regulatory (RTS) and Implementing (ITS) Technical Standards on EMIR (European Commission Regulations No 148/2013 – 153/2013 of 19 December 2012) have been formally published (OJ L 52, 23.2.2013), which means that the relevant time-limits for implementation start running.
Of particular importance is the Commission Delegated Regulation (EU) No 149/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue, non-financial counterparties, and risk mitigation techniques for OTC derivatives contracts not cleared by a CCP (OJ L 52, 23.2.2013, p. 11).
The Regulation is binding and directly applicable in all Member States generally as of 15 March 2013, however, the separate date 15 September 2013 has been set for three articles regarding rules on portfolio reconciliation (Article 13) portfolio compression (Article 14) and dispute resolution (Article 15).
The obligation for the timely confirmation of the terms of the relevant OTC derivative contract is due on 15 March 2013 already. It applies to all entities in scope of EMIR financial corporations (FCs) and non-financial counterparties (NFCs) as well, regardless of whether they are above the clearing threshold.
Article 12 of the RTS contains a patchwork of specific regulations differentiating the timelines for contract confirmations depending on the type of entity (financial or non-financial) and the derivative’s class. Considering derivatives on commodities being concluded up to and including 31 August 2013, they are required to be confirmed by the end of the seventh business day following the date of execution of the derivative contract (thse relevant deadline for derivatives concluded after 31 August 2013 up to and including 31 August 2014 is the end of the fourth business day following the date of execution of the derivative contract and for derivatives concluded after 31 August 2014 the end of the second business day following the date of execution). For timelines regarding other classes of derivatives (for instance credit default swaps and interest rate swaps) see Article 12 of the RTS.
The obligation due as of 15 March 2013 is to have procedures in place requiring the relevant contracts be confirmed within the above timelines.
15 March 2013 is also the date by which potential non-financial counterparties exceeding the clearing threshold are required to declare such fact to their competent authority and ESMA (Article 10 of EMIR).
Financial counterparties and non-financial counterparties exceeding the clearing threshold there are additional obligations for daily mark-to-market and mark-to-model valuations.
Reporting obligation is partly dependent on the trade repositories authorisation process, thus the implementation is not so urgent as the above issues.