Activity

Here’s a summary of the reported changes to derivatives reporting, incorporating the details you provided and information from the search results:
1. Reporting for NFC+ Entities Clearing with Non-EU CCPs:
* New Annual Reporting Requirement: NFC+ entities (non-financial counterparties exceeding clearing thresholds) that clear derivatives contracts at recognized non-EU Central Counterparties (CCPs) are now required to report annually on their clearing activities at these CCPs.
* Group Basis: If the NFC+ entity is part of a group subject to EU consolidated supervision, this annual reporting must be done on a group basis.
* Information to be Included: The report must include details such as:
* Type of instruments cleared.
* Average values cleared.
* Amount of margin collected.
* Largest payment obligations.
* Active Account Obligation: It’s important to note that from June 25, 2025, EU FC+ and EU NFC+ entities trading certain derivatives are also required to hold an active account at an EU CCP and clear a representative number of trades through it. This is a separate, but related, obligation to encourage clearing within the EU.
2. Exemption for NFC- Entities Trading OTC Derivatives with Non-EU FCs:
* Removal of Equivalence Determination Dependency: The exemption from derivatives trade reporting for NFC- entities (non-financial counterparties below clearing thresholds) that trade Over-the-Counter (OTC) derivatives with non-EU Financial Counterparties (FCs) will no longer depend on the issuance of an equivalence determination in respect of reporting in the non-EU FC’s jurisdiction.
* Conditions Apply: This exemption is now subject to certain conditions being met, implying a shift away from a blanket requirement for equivalence. While the precise conditions are not fully detailed in the provided text, typically these would relate to the non-EU FC reporting under its home regime and providing necessary data to the NFC-.
* EU FC Responsibility: For derivative contracts between an EU FC and an EU NFC-, the EU FC is typically solely responsible for reporting on behalf of both counterparties. This does not apply to non-EU FCs unless specific arrangements are in place or the NFC- opts to report itself.
3. General Measures to Improve Data Quality:
* The changes also include new measures aimed at improving the overall quality of data reported for derivatives transactions. This often involves more granular reporting fields, updated technical standards, and enhanced validation rules by Trade Repositories (TRs).
4. Intragroup Transaction Reporting (Additional Context from Search):
* While your text mentions changes “in addition to the changes for reporting of intragroup transactions,” it’s worth noting that EMIR (European Market Infrastructure Regulation) has previously introduced and refined exemptions for intragroup transactions.
* Generally, intragroup derivative contracts, especially those involving at least one NFC (or an entity that would be an NFC if established in the EU), can be exempt from reporting under certain conditions (e.g., full consolidation within the same group, centralized risk procedures).
* However, EMIR 3.0 has narrowed the scope of this existing exemption for NFC+ entities. Where an EU parent exists, the parent will have to report the net aggregate positions of the NFC+ per class of derivatives on a weekly basis, even if the intragroup exemption is otherwise applied. The requirement for an equivalence decision for cross-border intragroup exemptions has also been removed, unless the third country is deemed high-risk for AML/CTF or a non-cooperative tax jurisdiction.
These changes reflect ongoing efforts to enhance transparency, mitigate systemic risk, and streamline reporting obligations within the EU’s derivatives markets, while also considering the global nature of these markets.

Video courtesy of Interactive Brokers

Video courtesy of Interactive Brok ers