Which parties have to report ETD contracts?

ETDs Reporting Answer 2

One of the main purposes of the EMIR reporting obligation is to enable the authorities to identify and analyse risk positions, although the reports will have other uses as well. Therefore an authority analysing EMIR reports would expect to see the counterparties where the risk lies once the contract has been concluded.

Under the principal clearing model, upon clearing, the risk lies on the clearing member ("CM") vis-à-vis the CCP and on the client of the CM vis-à-vis the CM.

Under this clearing model, when the client of the CM is an investment firm, the latter bears the risk arising from the derivative transaction vis-a-vis the CM, regardless of the investment service provided to its own clients.

In order to achieve the objective of identifying risk positions, all of the following will be deemed to be counterparties of the trades arising from a derivative transaction and thus having an EMIR reporting obligation:

1. The CCP clearing the derivative contract.

2. The clearing members of the CCP that are clearing the derivative contract.

3. The MiFID investment firms involved in the trade chain anytime they bear the risk arising from the derivative transaction by virtue of its contractual relationship with their counterparties (in particular, with the clearing member).

4. Other parties that do not fall into any of the categories above and that take the risk arising from the derivative transaction, except when they are exempt because of their status.