The EMIR Regulation governing derivative trading introduced a new obligation not only for banks and other financial institutions, but in many cases also for other entities. For this reason, please read the following information.
In order to determine which duties apply to an entity trading in derivatives, the EMIR Regulation introduces the categorization of counterparties as follows:
When entering into the contract, a KB client should specify the category to which it belongs.Hide
According to the EMIR Regulation, received confirmations of derivative transactions must be confirmed:
The EMIR Regulation introduced am obligation of both transaction parties to reconcile the respective portfolios regularly in order to compare mutually agreed transactions and identify any possible misunderstanding concerning terms of a given transaction.
Each business day
KB meets the obligation to reconcile transactions with its clients in the following manner:
The EMIR Regulation further introduced an obligation to communicate information about all derivative transactions to the so-called Relevant Trade Repository. This obligation concerns all financial and non-financial counterparties (FC, NFC-, NFC+) except natural persons (non-business). As a rule, Komercní banka, a.s. fulfils this obligation on behalf of its clients (except banking institutions. The client does not have to ask or pay for this service.
If, nevertheless, the client wishes to report on his/her/its own behalf, he/she/it must notify KB in order to prevent forbidden duplicate reporting.
No matter whether you report directly or KB reports on your behalf, you must obtain your LEI (Legal Entity Identifier).Hide
Each legal person must obtain its LEI, i.e. an identification number that identifies it uniquely throughout the world, for the purpose of reporting to the Relevant Trade Repository (each entity can have only one LEI). The LEI cannot be assigned to natural persons and businesspersons.
Several commercial entities are entitled to assign the LEI; in the Czech Republic it is the Central Securities Depository (www.cdcp.cz), that issues them online 
The LEI must remain valid throughout the whole duration of client’s any derivative transaction; failing this, such a transaction, KB will not be able to report on the client’s behalf.
The LEI is used for the identification of its holder during the reporting in accordance wit the EMIR Regulation. The reporting cannot be done properly without the LEI.
Should the client fail to deliver its LEI to KB, KB may reject to conclude a transaction with a client as the reporting without the LEI may be considered an administrative offence committed both by the client and the bank under Act No. 256/2004 Coll., On Trading in the Capital Market.
Caution: Please consult the www.openleis.org website to find out whether your company has already obtained its LEI, e.g. from its parent company, so that you will not ask for issuing the LEI repeatedly.
If you obtained the LEI and have failed to notify us about this fact, please send us your LEI through the zc.bk@rime e-mail box.
|LEI Komerční banky, a.s.:||IYKCAVNFR8QGF00HV840|
Any possible disputes resulting from OTC derivative transactions will be resolved in accordance with an agreement contained in the contract or in addressed in another manner as agreed by both parties.Hide
EMIR has introduced a general obligation of the transaction parties to clear selected OTC derivative transactions through a so-called central clearing counterparty. Such a clearing will be introduced item by item for counterparties and derivative transactions of different types starting from 2015. This obligation does not apply to NFC- counterparties.Hide
Further information is available at http://www.kb.cz/cs/regulace-investicniho-bankovnictvi/informace-k-emir/index.shtml (Only available in Czech)
ESMA European Securities and Market Authority
In case of any questions, please do not hesitate to contact us through the E-mail box zc.bk@rime.Hide