Europex has issued this set of comments on the legislative proposal issued by the European Commission earlier this year (see here) as part of the EMIR review. The proposal contains several key changes to EMIR, several of which will have a significant impact on “non financial” energy and commodity companies when they take effect. These include:
- “Compulsory” delegated reporting when certain Non Financial Counterparties (NFC) trade bilaterally with a Financial Counterparty(FC).
- Removal of the requirement to report trades between internal entities if one of them is an NFC.
- Removal of the final backloading requirement of EMIR, currently scheduled for February 2019.
- A requirement that CCPs report Exchange Traded Derivatives.
- A simplification of the process and calculation around the clearing threshold.
These significant changes go into effect long after the reporting changes that come into use on 1st November 2017 (see here).