As deadlines for implementing EMIR reporting changes near for the EU (set for April 29, 2024) and the UK (scheduled for September 30, 2024), grasping the nuances of these revised requirements becomes paramount.
MAP FinTech, a RegTech platform that supports EMIR, recently delved into the new REFIT and how companies can get prepared.
From the reporting commencement date, all submissions by Reporting Counterparties and Entities Responsible for Reporting to the TRs must align with these new mandates. This covers derivatives concluded after the reporting kickoff date and any changes or terminations reported post that date, regardless of the derivative’s initial conclusion date. This implies it could affect an outstanding derivative—one previously concluded and reported.
Specifically, entities will receive a transition period of 180 days to adjust their outstanding derivatives to the updated regulatory guidelines. They can leverage a unique event type labelled ‘Update’. However, if they’ve dispatched a comprehensive message report labelled ‘Modify’ or ‘Correct’, it necessitates including the entire derivative report details as per EMIR REFIT’s revamped Regulatory and Technical standards.
Remarkably, both the EU and UK versions of EMIR REFIT introduce 87 and 88 novel fields respectively. Additionally, several fields have witnessed alterations in their naming, description, acceptable values, or a blend thereof.
This highlights the immense preparatory tasks Reporting Counterparties and Entities Responsible for Reporting must undertake, Map FinTech explained. They need to amend all pertinent fields for outstanding trades to match these new criteria. But there’s a notable exception: entities shouldn’t generate new Unique Trade Identifiers (UTIs) for existing derivatives, even if they don’t entirely match the updated format. Nonetheless, other fields influenced by EMIR REFIT in the context of outstanding trades must comply with the changed requirements.
The transition phase doesn’t alter the duty to report significant events within T+1. Meaning, events post the reporting launch date should be reported by the next working day’s end. Fulfilling this mandate undeniably presents substantial challenges for reporting entities.
Moreover, as per the updated reporting standards, some entities might need to revise their reporting method or modify how they communicate collateral and valuation details. This emphasises that these entities must carefully devise their strategies, executing them in tandem, to guarantee that their trades swiftly align with the renewed standards. A lack of preparation could expose them to potential vulnerabilities.
Moreover, it’s crucial for entities not engaging in delegated reporting and those with counterparties governed by identical reporting duties to commence discussions regarding the management of outstanding trades. This dialogue seeks to synchronize the necessary adjustments, ensuring both parties comply with EMIR REFIT rules.
Lastly, understanding that all these preparation steps need simultaneous execution with ongoing EMIR reporting protocols is vital. This guarantees that existing EMIR reporting operations stay active and efficient up to the final pertinent date.
At MAP FinTech stated that it prides itself on its deep knowledge in managing migration and transition phases, especially regarding outstanding trades. Its methodologies have been effectively implemented during past regulatory updates such as EMIR. Furthermore, its robust toolkit simplifies the task of auto-updating outstanding trades, meeting the new criteria while reducing the reporting entity’s workload.
MAP FinTech is poised to aid any firm under EMIR Reporting in adapting smoothly to EMIR REFIT’s evolving demands.
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![Temenos (SIX: TEMN) today announced that National Bank of Iraq (NBI), part of the Capital Bank Group, has successfully gone live with Temenos core banking and payments. NBI, which has 27 branches across Iraq, offers a comprehensive range of services to individuals and businesses in the country. Since 2005, NBI has been majority owned by Capital Bank, one of the top financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 7.6 billion[1]. With this implementation, NBI moved from its legacy systems onto the same core banking platform as other entities in the Capital Bank Group. This will enable NBI to operate more efficiently and integrate seamlessly with other systems to develop new products faster and deliver an improved customer experience. Capital Bank Group is a long-standing Temenos customer with other entities in the Group including Capital Bank of Jordan, Bank Audi, Société Générale Bank Jordan and NBI Saudi Arabia, already on the Temenos platform. NBI also becomes the first part of the group to adopt Temenos Payments, which enabled the bank to process more than 100,000 transactions of incoming and outgoing domestic and international payments in the first 15 days of operation, with a 99% straight-through processing rate. The migration to the Temenos platform for core banking and payments at NBI was completed in under 12 months thanks to Temenos’ pre-configured banking and payments capabilities and APIs which reduced the need for complex customizations, as well as close collaboration between Temenos, NBI, Capital Bank and delivery partner ITSS. This success was recently recognized in the IBS Intelligence Innovation Awards, with Capital Bank winning ‘Best Implementation of Core Banking Services'. The implementation at NBI follows several other successful transformation projects with Temenos for Capital Bank in the last few years, including the launch of NBI’s branch operations in Saudi Arabia in just 45 days, as well as the integration of Bank Audi and the former Jordanian operations of Société Générale, each of which was achieved in under four months. Collectively, these projects helped Capital Bank to increase operational efficiency by more than 50% within three years, bringing significant cost savings and an improved customer experience. With faster, more accurate processing and immediate service requests, the bank has maintained high customer retention rates and a reputation for service excellence. Izzidin Abusalameh, Chief Operations Officer, Capital Bank Group, commented: “This achievement marks a significant milestone in our digital transformation journey and positions us as a leading player in the banking industry. We have seamlessly transitioned the National Bank of Iraq to a cutting-edge core banking system which will not only enhance operational efficiency but also support providing our customers with a superior digital banking experience. Our continued partnership with Temenos has not only provided us with an advanced technological platform but has also facilitated a culture of flexibility and adaptability, enabling us to execute our ambitious growth plans.” Lee Allcorn, Managing Director, Middle East & Africa, Temenos, said: “Congratulations to National Bank of Iraq and the Capital Bank team on this successful implementation that gives NBI business agility and the same modern technology platform and ability to deploy fast with pre-configured banking capabilities as the rest of the group. With Temenos, Capital Bank Group is future-ready, and we are proud to support them as they continue to innovate and leverage our platform to grow sustainably and enhance the banking experience for customers.”](https://fintech.global/wp-content/uploads/2024/04/rupixen-Q59HmzK38eQ-unsplash-2-218x150.jpg "Flutterwave teams up with Acquired.com to streamline outward remittances in EU and UK")
