4.1.1.1 ESMA Details Maintenance

The ESMA Details call form is enhanced in the Options Contract Input screen for assisting the third-party reporting system to report OT trades in the required format of the respective CCP.

European Securities and Market Authority (ESMA) introduced European Market infrastructure regulation (EMIR) reporting regulation to increase the transparency of the over-the-counter (OT) derivatives market, and to reduce the operational risk of the market.

The EMIR regulatory requirements are separated into three main categories:

• Risk Mitigations: OT contract which is not cleared by a Central Clearing Counter-party (CCP) are required to ensure that appropriate procedures and arrangements are in place to measure, monitor, and mitigate operational risk and counterparty credit risk.
• Clearing Obligation and Collateral Requirements: Standardized OT derivative contracts must be cleared through central counterparties to reduce the risk in the financial system.
• Transaction Reporting: All OT derivative contracts must be reported to trade repositories.