Autorité Des Marchés Financiers: Extension Of Transaction Reporting Requirements To OTC Derivatives

Supervision of OTC derivatives markets is one of the priorities set by the G20. The Autorité des Marchés Financiers has therefore decided to take part in the CESR¹ project to collect OTC derivatives transactions without waiting for the MiFID² 2 and EMIR³ to come into force.

Modifications to the AMF General Regulation arising from this decision were approved by the Order of 20 December 2011 published in the Official Journal of 24 December 2011. Modifications have been made to Articles 315-46 and 315-47 of the AMF General Regulation and to AMF Instruction n°2007-06 and its two appendices (RDT Guide V3 and functional Questionnaire), in line with the CESR guidelines published in October 2010.⁴ These provisions came into force on 1st January 2012.⁵

These modifications:

extend the reporting requirements to OTC derivative transactions carried out by French investment services providers and French-based branches of investment services providers that are authorised in the European Economic Area. However, this extension does not apply to asset management companies.
concern OTC derivatives dependent upon the performance of a single security or the credit risk of a single issuer, the underlying of which is a financial instrument admitted to trading on a regulated market in a State party to the European Economic Area agreement or on an organised multilateral trading facility.

Hitherto, reporting was restricted solely to financial instruments admitted to trading on a regulated marketor on an organised multilateral trading facility.

1 Now the ESMA since 1st January 2011.

2 MiFID = Markets in Financial Instruments Directive.

3 EMIR = European Market Infrastructure Regulation.

4 Guidance to report transactions on OTC derivative instruments (CESR/10-661) published in October 2010 (website: www.esma.europa.eu).

5 However, given the IT work required of the service providers in question, there will be some flexibility on the starting date through Q1 2012, provided that all transactions carried out since 1st January 2012 are caught up with at a later date.