EMIR

If you trade in derivatives in all asset classes you will need to report all transactions as part of European Market Infrastructure Regulation (EMIR)

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Who Reports?

Brokers, dealers, clients within the EU. Brokers will report on behalf of retail clients, but corporate clients will need to report or they could appoint their broker to report on their behalf.

Who do they report to?

They report to a trade repository. Currently there are 8 trade repositories, but the number is likely to increase.

When does it start?

12 February 2014

Do you need to back report?

Yes, all open transaction as of 12 August 2012 will also need to be reported within 3 months, and all closed transactions will need to be reported within 3 years.

Cost of reporting?

It will depend on the volume, but it will not cost a fortune. (speak to the trade repository for prices)

What is reported?

There are approximately 86 fields reported for every transaction, some of them are common, and some are zero.

What is required?

All brokers and dealers and corporate clients will need have a Legal Entity Identity in order to report.

Exemptions?

Spot forex (cash) settled within 7 days

With regard to current speculation relating to the exit of Barclays retail FX from the UK market, I would expect it is peanuts to them and the is no benefit to them as retail clients trade through FXCM. Their minimum quantity was 50K anyway so they probably didn’t see any business and commercial clients can trade forex with them.

Barclays as a corporate entity outsources that service to City Index

Thay probably earn more out of it that way than running it themselves.