FCA clarifies the expectation for investment firms and trading venues ahead of LIBOR transition

FCA clarifies the expectation for investment firms and trading venues ahead of LIBOR transition

We have had a number of clients reach out to us recently on this topic and we are now able to refer them to this FCA notice. UnaVista recommends that clients read the details within the FCA’s notice and confirm the impact on their reporting processes but the question; “should a transaction report be submitted when the reference rate for a previously reported contract changes from LIBOR to an alternative rate (whether as a result of the application of a fallback or otherwise)?”

 

Is answered clearly by FCA :-

-          Where the only amendment to the contract is the reference rate and associated spread, a new transaction report should not be submitted.

-          Where other amendments are made to the contract that result in a reportable transaction, such as a change in notional, a new transaction report should be submitted in accordance with applicable requirements.

FCA also clarifies the expected outcomes for trading venues reporting under RTS 23 as onshored and also provides details for firms reporting under UK MIR. Read more UK MiFIR data reporting and LIBOR transition | FCA and UK EMIR news | FCA.

UnaVista helps over 1,500 firms fulfil their transaction reporting obligations for MiFIR, UK MiFIR, EMIR and UK MIR. Our customers can also fulfil multijurisdictional derivative reporting obligations through their single relationship with UnaVista. 

Our customers rely on us to acts as a conduit to NCAs and other relevant industry bodies. When changes to existing regulations arise, our customers trust that our flexibility will help them reduce any impact of those changes. Our customers  benefit from regular working groups and forums that aim to tackle topical and/or on-going regulatory issues. 

Please visit www.lseg.com/unavista or contact unavista@lseg.com for further details.