The European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA) in 2020 agreed to update EMIR validation rules to be in effect from 8 March 2021. The most relevant changes are based on the validation related to field 1.21 ‘Collateralization’. They will affect security reporting for 2.93 Action Type = ’New’ and 2.93 Action Type =’Valuation update’ where reporting will become Conditional instead of Optional.
New validation rules have been applied to the following fields:
- 1.1 Reporting timestamp,
- 1.19 Valuation timestamp,
- 2.27 Maturity date,
- 2.28 Termination date,
- 2.29 Settlement date and
- 2.82 Maturity date of the underlying are now having a validation rule which prevents sending reports where timestamps are equal or later than 2014-02-12 this should reduce the number of overreported backdated reports before the EMIR implementation.
- 2.34 Clearing obligation,
- 2.38 Intragroup and
- 2.68 Interconnection Point are now validated based on the trading scenario and instrument classification.
1.24 Initial margin posted
● If field 1.21 is populated with “OC” or “FC”, this field shall be populated.
● If field 1.21 is populated with “U” or “PC”, this field shall be left blank.
1.26 Variation margin posted
● If field 1.21 is populated with “PC”, “OC” or “FC”, one of the fields 1.26 or 1.30 shall be populated (with a positive value or zero) while the other field shall be left blank or populated with zero.
● If field 1.21 is populated with “U”, this field shall be left blank.
1.28 Initial margin received
● If field 1.21 is populated with “FC”, this field shall be populated.
● If field 1.21 is populated with “OC”, this field shall be left blank.
1.30 Variation margin received
● If field 1.21 is populated with “PC”, “OC” or “FC”, one of the fields 1.26 or 1.30 shall be populated (with a positive value or zero) while the other field shall be left blank or populated with zero.
● If field 1.21 is populated with “U”, this field shall be left blank.
