The European Securities and Markets Authority (ESMA) has delayed the deadline for trade repository (TR) registration until November, citing problems with applications.
Originally, TRs were due to to register with ESMA as part of the European market infrastructure regulation (EMIR) by 24 September. However, they will now have until 7 November to complete their applications.
ESMA said the delay in the timetable was due to a combination of factors, including problems faced by applicants in ensuring their applications were complete. Reporting is now expected to begin in February 2014.
The news comes as firms prepare to comply with tougher portfolio reconciliation regulations on their OTC derivatives trades from Sunday as the latest part of EMIR comes into force.
The latest rules require firms that trade in OTC derivatives to have agreed portfolio reconciliation with their brokers and will be implemented on Sunday 15 September, six months after ESMA published its official rules.
Firms will need to ensure they have agreed upon a process to reconcile portfolios, which will enable counterparties to compare trade terms to discover valuation differences.
Once a portfolio reconciliation procedure has been agreed, reconciliations take place on a regular basis, which can range from daily to quarterly depending on the size of the portfolio and whether the end-user is a financial institution.
It is thought most firms regularly dealing in OTC derivatives will be ready for the change, but for smaller finance businesses and corporates that occasionally use OTC derivatives there may be some hiccups as many are thought to be unaware of their new obligations under EMIR.