EMIR trade reporting and EU LEIs one month in

The European Market Infrastructure Regulation (EMIR) trade reporting mandate has been in full swing for one month now, having commenced on 12 February. It is designed to bring about increased transparency to derivatives markets in Europe in the wake of the post 2007 financial crises. Full transparency, however, can only be possible once every legal entity in Europe with a reporting obligation is reporting.

No one knows the exact figure, but industry estimates have the number of legal entities with a reporting obligation in Europe at one million. As you can see from the table below, which outlines the number of legal entities in the European Union (EU) that have applied for an LEI (legal entity identifier), there is still some way to go before everyone is reporting.

The LEI is a crucial component of trade reporting, since it enables regulators to see who is trading with whom. Taking one million as a reference point, it is clear that the uptake of trade reporting has been slow and there is still a lot of ground to be covered in the months and years ahead.

Tags: Trade ReportingEMIRRegulationLEIEU