The Swiss Financial Market Supervisory Authority FINMA is revising the FINMA Financial Market Infrastructure Regulations. On the one hand, the content of the report on mandatory reporting of derivatives transactions was clarified; on the other hand, the catalogue of mandatory clearing interest rate derivatives was updated.
FINMA is adjusting the FINMA Financial Market Infrastructure Regulations on two separate issues and will consult on them until 5 July 2022.
First of all, FINMA clarifies the contents of the mandatory declaration of derivatives transactions (Article 39 of FinMIA). The aim is to continuously improve the quality of reporting and close the gap between transaction regulation and market regulation. Regarding the reporting of derivatives transactions based on listed equities, it is clear that additional relevant information about the underlying value and value-determining characteristics must be reported for inclusion in transaction regulation. Reporting entities must fully and accurately report derivatives transactions as these are critical to market regulation.
Second, in response to benchmark reforms (replacing reference rates such as LIBOR), FINMA is updating the catalog of interest rate derivatives that must be cleared through central counterparties. As before, FINMA maintains close links with EU law in this area.