What is it ?
EMIR is the European version of a worldwide regulation put in place after 2008 crisis to have a better control and transparency over financial derivatives trades. It has been put in place in 2012.
Since EMIR regulation, all parties implicated into a derivative trade must declare their positions to a licended Trade Repository. In Europe, several Central repositories entity have been licensed. iBanFirst is working with one of them called CME ETR.
In Europe, ESMA (European Securities and Markets Authority) - the official organisation in charge of the EMIR regulation - has declared that FX forwards is a derivate product.
Therefore, iBanFirst is required to declare all its customers derivatives to a Central repository. The good news is our customers don't have to worry about the reporting of their derivatives. We do it for them !
Declaration of FX forward
Forward products are considered as derivative trades and must be declared with regards to EMIR regulation. iBanFirst will declare Forward products in the name of its clients - with their consent.
To declare derivate products, each parties of a derivative trade must have a Legal Entity Identifier (LEI) created specifically for these declaration.
This LEI can be ordered online (see the list of official website licensed to provide LEI to companies here) or iBanFirst can also do it for you on request.