Currency, Financial Market Transactions

We offer performing transactions on the purchase and sale of financial instruments, concluding Reverse Repo and Repo transactions with debt securities.

On July 4, 2012, Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (hereinafter – EMIR [European Market Infrastructure Regulation]) was adopted.

What is the scope of application of EMIR?

EMIR applies to all legal entities that have performed or are planning to perform transactions in derivative financial instruments since August 16, 2012.

What transactions are subject to EMIR?

EMIR applies to transactions in derivative financial instruments, e.g.:

• options;
• forwards;
• swaps;
• margin forex and similar transactions.

Main requirements of EMIR:

• to report on transactions in derivative financial instruments to the newly established specialised institutions – trade repositories;
• to introduce risk mitigation approaches to transactions not subject to the mandatory clearing with central counterparties;
• the obligation to perform the clearing of transactions with central counterparties, if the clearing threshold is exceeded;
• risk mitigation measures.

What risk mitigation measures are there?

Risk mitigation measures depend on the volume and amount of transactions. They include timely approval of transactions, portfolio reconciliation, dispute settlement procedures. EMIR requirements stipulate the reconciliation of the portfolio overview at least once a year; however, the frequency of reconciliation depends on the number of open transactions (transactions for which the maturity date has not yet set in). Observing this requirements, RIB will prepare a portfolio overview report for its customers.

In accordance with EMIR requirements, counterparties that conclude transactions in OTC complex financial instruments have to agree on the dispute settlement procedure in the event of any disagreements with regard to a particular transaction. The description of the dispute settlement process will be included in the Agreement on Financial Market Transactions and the customer will be notified of the respective amendments via the communication channels approved by the customer.

Reporting on transactions in derivative financial instruments

Reporting is the provision of information regarding concluded transactions to specialised institutions – trade repositories. Reporting shall be ensured by the end of the next business day after concluding the transaction or amending the conditions of the transaction. The obligation to report to trade repositories about transactions in OTC derivative financial instruments was introduced on February 12, 2014.

Customer’s obligation in connection with EMIR

Taking into account that the reporting obligation is binding to both counterparties, i.e., both the customer and the Bank, for the customer’s convenience we offer an opportunity to report to the trade repository on behalf of the customer about the respective transactions performed with RIB. To enable the Bank to report on transactions in derivative financial instruments on behalf of the customer, the customer has to receive the Global Legal Entity Identifier (LEI) number that has to be reported to the Bank.

LEI numbers are issued by any organisation approved by pre-LOUs (Local Operating Units). The list of approved pre-LOUs organisations is available here: http://www.leiroc.org/publications/gls/lou_20131003_2.pdf.

Additional information on EMIR is available here: http://www.esma.europa.eu/page/European-Market-Infrastructure-Regulation-EMIR.

Ensuring the high level of service, we offer ensuring the receipt of a LEI code on behalf of the customer according to the Price List determined by the bank.