EMIR Refit will come into force in the UK from September 30, 2024, with the aim of increasing transparency, accuracy and efficiency in the reporting of derivatives transactions. eflow Global’s Ben Parker spoke to Global Trading about the dangerous lack of preparedness his company has seen across the industry.
“Just two weeks before the EU EMIR Refit deadline on April 29, an Italian company was waiting for a compatible solution to be implemented from scratch,” Ben Parker, CEO and founder of eflow Global, told Global Trading. “While it is encouraging that companies are looking for technological solutions to address regulatory changes, it is concerning that they even believed this could be achieved within the established time frame.”
To prevent the same situation from happening in the UK, with EMIR Refit coming into effect from 30 September, eflow Global has launched the EMIR Refit Readiness Audit. Through a 30-minute consultation, the regtech firm hopes to help businesses understand how they should prepare for the new requirements.
The new regulation includes 89 new data fields and formats, revised reporting templates, and improved data quality requirements. According to eflow, particular customer pain points include the shift to an XML reporting format and how to interact with the new unique product identifier (UPI) field. Failure to prepare to deal with these changes will only result in fines.
The rollout seen in the EU cannot be replicated in the UK, Parker warned. “Whether it’s a laissez-faire attitude to the potential consequences of these regulations, a misplaced trust in legacy systems, or simply not understanding the task at hand, it’s a trend that desperately needs a change.”
He concluded: “Ultimately, EMIR Refit has given UK businesses a rare gift – the benefit of hindsight. As the September deadline approaches, it is vital that UK businesses learn from the experiences of EU businesses and avoid similar obstacles.”
©Markets Media Europe 2024
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