Hedge funds seek third-party Emir valuations

Delegating Emir reporting may cause more problems than it solves

It seems a classic case of ‘if you want something done right, do it yourself’.

As the August 12 deadline for reporting derivative valuations under the European Market Infrastructure Regulation (Emir) loomed large, many small to medium-sized hedge funds opted to delegate this function to their derivatives counterparties, but some firms are now regretting that decision.

The European Securities and Markets Authority (Esma) has made it clear that outsourcing derivatives valuation and reporting does n