The EU and UK regulatory regimes have begun to diverge post-Brexit. With the implementation of Regulation 2024/791 amending MiFIR, the EU has expanded the range of instruments that fall under its reporting obligations, effective from 28 March 2024.
The key addition is the inclusion of this paragraph to Article 26 of EU MiFIR that establishes the reporting obligation
d) OTC derivatives as referred to in Article 8a(2), irrespective of whether such transactions are carried out on the trading venue.
The OTC derivatives refer to the following derivative types of instruments denominated in EUR, JPY, USD or GBP:
Type1: OTC derivatives declared by the EU as subject to the clearing obligation under EMIR, and where those derivatives are interest rate derivatives have specific tenors (years till maturity).
Type 2: OTC derivatives – Credit Default Swaps that reference a Global Systematically Important Bank (G-SIB) and that are centrally cleared or, that reference an index comprising G-SIBs and that are centrally cleared.
