Firms should not expect 'honeymoon period' with EMIR Refit - panel

European regulators will not allow firms “a honeymoon period” to comply with reporting requirements that take effect in two months, a panel of experts has suggested.

Speaking at the Eurex conference in Frankfurt on Thursday, a panel of experts discussed the EMIR (European Market Infrastructure Regulation) Refit reporting requirements that take effect across EU member states on April 29.

Asked what national regulators will do immediately after the implementation deadline, Tim Hartley, EMIR Reporting Director at Kaizen, told the delegation: “Based on interviews with the national competent authorities, the mood that I interpreted is that, come this point, they will be more interested in data quality going forward because of the number of changes under EMIR Refit.”

Hartley added: “There will be no honeymoon period with EMIR Refit and some of the other G20 reporting regulations that are changing this year as well. Firms have had at least two years notice for EMIR Refit and, while it is tough, I think there will be no honeymoon period.”

John Graham, a Senior Director of Regulation at FIA, the industry trade body, said: “No-one really should be out on a limb on their own when it comes to two months before go-live. There are various channels and avenues to engage with the industry and peers to ensure that you are aligned where it makes sense.”

Suzanne Calcagno, Global Head of Regulatory Response and Oversight MSS Operations at HSBC Bank, said firms that operate in the UK and Europe face the double challenge of compliance in both jurisdictions, given the UK will implement its version of the rules at the end of September.

“The uniquely complicating factor with EMIR is that ESMA (European Securities and Markets Authority) EMIR is an entirely separate reg from UK EMIR, not withstanding the transition period and the six month delay. Even once they are both live, they will be entirely separate regs.”

Calcagno added: “We had a team that dealt with EMIR now we need two teams that deal with each and look to benefit from issues we see with one in the other.”

Hartley said late last month European firms were “in the weeds” in their preparations for the European reporting changes and look likely “to be in different places come go-live”.