Industry bodies collaborate on new EU reporting agreement
19 December 2019 London
Image: Shutterstock
The International Securities Lending Association (ISLA) has collaborated with four other associations to launch a new agreement framework aimed at simplifying reporting across different EU regulatory regimes.
The Master Regulatory Reporting Agreement (MRRA), is based on the International Swaps and Derivatives Association鈥檚 (ISDA) similar agreement template for reporting under the European Market Infrastructure Regulation (EMIR).
This new agreement is applicable for EMIR but will also cover the Securities Financing Transactions Regulation (SFTR), the first phase of which is due to come into force in April 2020.
According to ISLA, the MRRA has been specifically designed to remain effective once the UK leaves the EU in January.
The other associations involved in developing the new contract include the Association for Financial Markets in Europe (AFME), the Futures Industry Association (FIA), and the International Capital Markets Association (ICMA).
According to ISLA, the MRRA gives market participants an option to use a single template to help them manage regulatory obligations.
The MRRA sets out common terms governing mandatory and delegated reporting of derivatives transactions under EMIR, compatible with changes introduced via EMIR Refit, as well as securities financing transactions under SFTR, ISLA explained.
ISLA highlighted that the use of a common template for all reporting relationships under the two rule sets will bring greater efficiency and consistency to the regulatory reporting process.
The MRRA was developed with the assistance of committees and working groups established by the five associations, compromising representatives from both buy-and sell-side firms with expertise in derivatives and securities financing transactions.
The Master Regulatory Reporting Agreement (MRRA), is based on the International Swaps and Derivatives Association鈥檚 (ISDA) similar agreement template for reporting under the European Market Infrastructure Regulation (EMIR).
This new agreement is applicable for EMIR but will also cover the Securities Financing Transactions Regulation (SFTR), the first phase of which is due to come into force in April 2020.
According to ISLA, the MRRA has been specifically designed to remain effective once the UK leaves the EU in January.
The other associations involved in developing the new contract include the Association for Financial Markets in Europe (AFME), the Futures Industry Association (FIA), and the International Capital Markets Association (ICMA).
According to ISLA, the MRRA gives market participants an option to use a single template to help them manage regulatory obligations.
The MRRA sets out common terms governing mandatory and delegated reporting of derivatives transactions under EMIR, compatible with changes introduced via EMIR Refit, as well as securities financing transactions under SFTR, ISLA explained.
ISLA highlighted that the use of a common template for all reporting relationships under the two rule sets will bring greater efficiency and consistency to the regulatory reporting process.
The MRRA was developed with the assistance of committees and working groups established by the five associations, compromising representatives from both buy-and sell-side firms with expertise in derivatives and securities financing transactions.
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