April 10, 2021
Master Regulatory Reporting Agreement (Mrra)
“It`s a way to document [delegated reporting agreements] in a standard format, so you don`t have to redevelop new documents on a bilateral basis and there`s no huge legal burden on production, but it goes and is pretty close to the criteria of the settlement,” Talks says. On 19 December 2019, the International Swaps and Derivatives Association (Isda), the Fia Industry Association (FIA), the International Capital Market Association (Icma) and the International Securities Lending Association (Isla) published the MRRA with the aim of providing a standard contract format for companies that offer or sub-process delegated reports. “If you`re a non-financial company that pays under Emir, you`ve already gone through this testing process and this overload and the operational aspect of resourcing to support regulation,” says Catherine Talks, product manager at UnaVista. “If we just stick to the binding regulations, much of this reporting framework becomes obsolete and much more committed to a vision of reconciliation. While you allow a company to report on your behalf, you should cross-reference these reports and make sure you agree with them. They are invited to adapt to a presentation to provide an overview of the structure and operation of the Master Regulatory Reporting Agreement (MRRA), jointly published by five inter-professional organisations in December 2019 to simplify reporting agreements in different EU regulatory systems. This meeting will focus on how market participants can use the MRRA model to document and manage their regulatory obligations and provide otC derivatives reporting services under the EMIR Regulation. You will hear from legal experts on the practical use of MRRA, both in terms of mandatory and delegated reporting of derivatives and the regulatory reporting landscape underpinned under EMIR Refit. For the SFTR, the Buy-Side is responsible for the coverage of alternative investment funds (ALTERNATIF FONDS) and mutual funds in securities (Ucits) that they manage from 11 October. Companies are responsible for reporting on their smaller NSPs, which do not have the resources to have a regulatory reporting function as of January 11, 2021. “[Reporting agreements] highlight the risks and the risks remain to the counterparty that has a reporting obligation, not to the company that provides delegated reporting,” the advisor explains. “It`s pretty simple.” Some say the standard format of the contract will facilitate agreements.
Others believe that the document is too complex and too long to be widely adopted. There is a disparity between associations and market participants with regard to the use of a Master Regulatory Reporting Agreement (MRRA) for the European Market Infrastructure Regulation (Emir) and the Declaration of Securities Financing Operations (SFTR). The Association of European Financial Markets (AFME), Future Industry Association (FIA), International Capital Market Association (ICMA), International Swaps and Derivatives Association, Inc. (ISDA) and the International Securities Lending Association (ISLA) have published a new agreement to facilitate reporting on various regulatory systems in the European Union. Reporting obligations relating to securities financing transactions will be phased in over a nine-month period starting April 11, 2020. As with the EMIR Regulation, the data from which companies must begin reporting LTS varies according to their “type of entity,” with investment firms and credit institutions the first to comply with or after the APRIL 11, 20206 SDR.