SIFMA Submits Comments to the EC on EMIR Reporting Obligation Application to Buy-Side

SIFMA Asset Management Group ("AMG") submitted comments to the European Commission ("EC") requesting a postponement of the European Market Infrastructure Regulation ("EMIR") reporting obligation to the buy-side. SIFMA AMG stated that it has substantial reservations regarding the operational feasibility for compliance from buy-side market participants, and explained that applying the Reporting Obligations to buy-side market participants before they have time to prepare may result in inaccurate reporting, which would impede the goal of creating a clear overview of the derivatives market. Additionally, SIFMA noted that the reporting infrastructure is not fully developed, and the completed infrastructure will not be completed before the Reporting Obligation deadline.

Furthermore, SIFMA AMG explained that the EMIR two-sided Reporting Obligation is not consistent with U.S. regulation and would require U.S. SIFMA members to build new systems in order to handle the Reporting Obligations.

SIFMA AMG requested a deferral of application of the Reporting Obligations for one year.

See: SIFMA Comment Letter.Related news: CFTC Comparability Determinations for Six Jurisdictions and Related No-Action Letter (No-Action Letter 13-75) (with Lofchie Comment) (with Lofchie YouTube Selection) (December 20, 2013).