Legal and tax information

• Financial instruments traded on trading venues (regulated markets, multilateral trading facilities, or organized trading systems) in the European Economic Area, such as stocks, bonds, and exchange-traded funds (ETFs).
• Over-the-counter derivatives like currencies, stocks, interest rates, and commodity derivatives (forwards, swaps, and options).
• Exchange-traded derivatives such as options and futures.

There is no need to apply for a LEI code if a legal entity only acquires units of investment funds (non-exchange traded investment funds, i.e., non-ETFs) or government savings notes.

• We offer our clients the opportunity to obtain a LEI code under special conditions from our partners.
• You can also choose one of the international organizations providing LEI codes for legal entities on the website www.gleif.org.

From April 29, 2024, new changes regarding transaction data reporting under EMIR came into effect, primarily regulated by Commission Delegated Regulation (EU) 2022/1855 and Commission Implementing Regulation (EU) 2022/1860 dated June 10, 2022, concerning the provisions for data submission under the EMIR.

These recent changes to EMIR represent a significant update to existing rules for reporting derivative transaction data.

These changes apply to both financial counterparties and non-financial counterparties with derivative positions, regardless of whether they report data directly to trade repositories or delegate the task to a third party.

Key changes in data reporting under EMIR include:

• Data fields will provide information related to counterparties, such as their type of activity, corporate sector, and clearing threshold;
• The number of reportable data fields is increasing;
• Previous ambiguities in reporting certain OTC derivatives, product classifications are being eliminated and reference data are being refined;
• Changes relate to providing information necessary for data submission to trade repositories, detailing the provision of Legal Entity Identifier (LEI), and establishing rules for creating and submitting Unique Trade Identifiers (UTI);
• Under the new rules, entities responsible for data provision must notify their supervisory authority (and to the supervisory authority of the other counterpary, if different) of errors and technical obstacles that result in errors in reports submitted to trade repositories.

EMIR (European Markets Infrastructure Regulation) is an EU regulation aimed at overseeing trading in over-the-counter derivatives (OTC derivatives) and related risks, where, unlike exchange-traded derivatives, a bank is a counterparty. EMIR covers the following aspects: risk mitigation measures, clearing obligations, transaction data disclosure (for both OTC and exchange-traded derivatives).

You can read the full text of the regulation here.

After concluding a derivative transaction with Swedbank, AB, you will receive a transaction confirmation. To confirm the transaction, please follow these steps:

1. Log in to the Swedbank, AB internet bank.
2. Go to the section “Traderoom“ -> “Reports“ -> “Confirmations“. Here you will see all transactions that require your confirmation.
3. To view the transaction confirmation, click on “Transaction ID“, and you will be able to view the confirmation in PDF format.
4. If you agree with the terms of the transaction, confirm it by clicking the “Confirm“ button.

Please note that you must confirm the transaction data no later than the second business day after concluding the transaction. If the transaction is not confirmed on time, the bank will have to report an unconfirmed transaction to the Bank of Lithuania.

The clearing obligation is the client's commitment to settle through the central counterparty if transactions are speculative and their total value exceeds the clearing threshold. The clearing threshold for each class of over-the-counter (OTC) derivative transactions is set in the European Securities and Markets Authority (ESMA) technical standards and will be continuously reviewed after public consultation.

Not all OTC derivative transactions are included when calculating the clearing threshold. OTC derivative transactions aimed at reducing risk related to the commercial or budgetary financing activities of a non-financial entity or group that this entity belongs to are not included when calculating the clearing threshold. Exact criteria for determining which transactions may be excluded can be found in ESMA's technical standards available on ESMA website.

All other OTC derivative transactions made by non-financial counterparties or their groups are considered speculative and thus included in calculating the clearing threshold.

Current clearing threshold values (based on the total transaction value):

• 1 billion euros for credit derivative transactions;
• 1 billion euros for equity derivative transactions;
• 3 billion euros for interest rate derivative transactions;
• 3 billion euros for foreign exchange derivative transactions;
• 3 billion euros for commodity derivatives and other transactions.

Please note that you are fully responsible for correctly calculating your clearing threshold, as Swedbank, AB may not have all the information about your OTC derivative transactions.

According to the regulation, portfolio reconciliation for derivative instruments must be carried out no less than once a year. To simplify the process, we will prepare a portfolio reconciliation report for you – if you agree with the data presented in the report, you can immediately confirm it in Swedbank, AB internet bank.

To review the portfolio reconciliation report:

1. Log in to Swedbank, AB internet bank;
2. Go to section “Traderoom“ -> “Reports“ -> “Reconciliations“;
3. Here you will find your portfolio reconciliation reports that need confirmation;
4. Open the report by clicking on your preferred file format: xls, csv, or pdf;
5. If you agree with the information provided in the report, confirm it by clicking the “Confirm“ button.

Yes, if the client sends a free-form request to transfer their obligation to provide valuation and collateral reports to Swedbank, AB by email at vps@swedbank.lt.

By sending us your request, you confirm that (i) you are a party to a financial transaction as defined by EMIR, (ii) you wish to transfer your obligation to provide reports on the valuations and collateral of your derivative transactions to Swedbank, AB, in accordance with the conditions set forth in this offer and any other conditions that may be additionally specified in the Master Transaction Agreement or another agreement made with us, and (iii) you agree that the derivative transaction valuations and collateral reports will be based on information that Swedbank, AB has in its systems or obtains through other means.

We will start providing these reports immediately after your request is processed.

Please note that we currently provide daily valuation reports and applicable collateral for clients' derivative transactions free of charge. However, Swedbank, AB reserves the right to change the fee for this service at a later stage. If such a fee is established, we will inform clients in advance.

We also want to point out that we offer the service of providing valuation and collateral reports for derivative transactions only to those clients who have transferred their obligation to provide transaction reports. Clients who opt out of our transaction reporting service will no longer be able to use our valuation and collateral reporting service.