MFA and AIMA Submit Letter to ESMA with Additional Q&As on EMIR

MFA and AIMA submitted a letter to the European Securities and Markets Authority (ESMA) with additional questions on the application of the European Markets Infrastructure Regulation (EMIR).  ESMA has been providing periodic updates to its questions and answers (Q&As) on the implementation of EMIR, and MFA and AIMA submitted additional questions in the hopes that ESMA will provide answers when it next updates its Q&As.  In the letter, MFA and AIMA asked ESMA questions related to the following issues:

  1. Reporting of Exchange Traded Derivatives;
  2. Foreign exchange contracts under EMIR;
  3. Access to and fees charged by trade repositories in connection with access to data provided by reporting entities;
  4. Partial delegation of reporting;
  5. Fund structures where assets and liabilities are segregated;
  6. Dispute resolution – scope of requirements to be imposed upon third country entities;
  7. Portfolio reconciliation;
  8. Portfolio compression; and
  9. Diligence required from non-financial counterparties.

In addition, previously, on March 12, MFA and AIMA submitted a letter with its first set of questions on implementation of EMIR.  ESMA responded to many of those questions, but certain key questions remained outstanding.  As a result, in this letter, MFA and AIMA specifically reiterated our request for guidance as it relates to: (1) the correct classification of alternative investment funds under EMIR, and (2) the lack of clarity as to the meaning of the word “established” for purposes of determining which entities may comply with a third country’s equivalent regulations and be deemed to comply with EMIR.