The update is in relation to the second level of the EMIR validation specifications which are applied by Trade Repositories (TRs) in order to ensure compliance with the EMIR reporting regime. These validation specifications involve the verification of the values reported, which must comply with the format and content rules specified in the technical standards on reporting.
Once the update has been implemented by the TRs, it is likely that a failure to adhere to the specific reporting requirements will activate a rejection of the report by the TR. This is the principal factor which should lead to enhancing better quality of data, since the rejection of a report will show which fields are not compliant with the EMIR reporting requirements and hence require correction. This will create a better opportunity to meet the EMIR reporting standards currently in place.
The second level validation is to be implemented by end of October 2015, with ESMA allowing TRs sufficient lead time for implementation. It is to be noted that this update did not create any new reporting requirements in addition to the original rules specified in the EMIR technical standards.
Please forward any queries regarding this update or seek advice in connection with any of these activities here.