CSSF/CAA joint conference on EMIR Reporting

The joint CSSF-CAA conference on EMIR Reporting was held on 5, 6 and 7 June. Initially scheduled for 5 June only, due to high demand, the conference immediately had to be extended to 3 days with limited access to allow a larger number of entities to participate. In total, 160 institutions – including UCIs, banks, investment firms, corporate, insurance, association and law firms – were able to hear the considerations expressed by the CSSF and the CAA. On 5 June, a particular attention was paid to the insurance sector, given the participation of Mr Thierry Flamand, President of Executive Committee of the CAA.

The conference covered three topics:

• Derivative market in Luxembourg
• What is next? EMIR Refit
• What is coming? New Data Quality supervision

The structure of the Luxembourg derivative market was illustrated, sharing a few key considerations based on the CSSF’s supervisory experience. Key elements of EMIR Refit Reporting, which will enter into force on 29 April 2024 with a ‘big bang’, were presented clearly drawing the attention of the audience to what the entities should do before 29 April 2024. The new approach for data quality supervision developed by ESMA and embraced by CSSF and CAA was explained, including a detailed description of the 19 data quality indicators developed by ESMA and implemented also by the CSSF.

On EMIR Refit Reporting, the key messages delivered were:

• Ensure continuity across 29 April 2024.
• Start preparing for these changes as soon as possible.
• Any failure to report accurately as from 29 April 2024 will be considered as a non-compliance with Article 9 of EMIR.

On EMIR Data Quality, the key messages delivered were:

• EMIR data quality is a key priority for ESMA for the CSSF as well as for the CAA.
• Leverage on existing EMIR obligations to reduce the compliance effort for data quality:
  • use or upgrade confirmation process
  • use or improve reconciliation process
• Both counterparties shall agree on details to be reported, involving all stakeholders in the reporting value chain.
• Bad data quality is a signal of other issues within the organisation.
• Outsourcing EMIR reporting does not relieve an entity from its duties. The entity must have access to its data and understand it.
• The CAA asks its entities to make sure that their TR reporting is consistent with its Solvency 2 reporting and the rapport distinct of its auditors.
• The CSSF asks its entities to make sure that their TR reporting is consistent with the information shared in other regulatory reporting.