When it comes to EMIR reporting compliance strategy the fundamental choice for market participants is whether to report derivatives themselves or to delegate reporting to their counterparty or another service provider.
EMIR derivatives reporting requirements are effective (save for backloading issues) from 12 February 2014.
There are the following possibilities regarding practical configurations as regards reporting:
1) one counterparty delegates on the other counterparty;
2) one counterparty delegates on a third party;
3) both counterparties delegate on a single third party;
4) both counterparties delegate on two different third parties.
A third party may perform the function of reporting for the counterparties to the trade only through a previous agreement (on behalf of one or both counterparties), nevertheless the obligation to report lies always on the counterparties to a trade.
It is important to take into account that investment firms that provide investment services (like execution of orders or receipt and transmission of orders) do not have any obligation to report under EMIR unless they become a counterparty of a transaction by acting as principal: nothing prevents counterparties to a derivative to use an investment firm (as a broker) as a third party for trade repository reporting, but this is a general possibility in all cases.
When reporting is delegated it is advisable for firms to safeguard free access to data included in their EMIR reports, in order to check that their reports are being correctly submitted to the trade repository. Trade repositories often offer such a type of membership (enabling only access to trade reports already entered by other counterparties), which involves significantly reduced membership fees.
Where firms choose the option to report themselves, they face, in turn, the dillema which trade repository to use (however, analysis for this choice is a separate issue).
For more details on derivatives reporting under EMIR requirements see EMIR reporting.