At a time where an unknown number of institutions covered by EMIR are still figuring out what LEI means, sitting on their hands as partners in crime with national regulators which are equally puzzled with enforcement of trade reporting obligations, BaFin shouts Eureka.
Risk.net has published an article outlining the drastic solution put in place by the German regulator to bring a high sense of urgency to compliance with EMIR.
Certain amendments were made in early 2013 to the German Securities Trading Act, requiring a mandatory audit of compliance to EMIR from FY 2014. All financial counterparties, along with non-financial ones with at least €100 million notional amount in OTC derivatives are caught by the rules.
Auditors must verify that firms have adopted appropriate procedures to comply with clearing obligation, reporting obligation and risk-mitigation techniques for non-cleared OTC derivatives. The compliance report will be shared with the board, and in certain circumstances with BaFin or directly with Germany’s public prosecutor.
Other regulators would be considering a similar game plan.Contact Us