EMIR

The European Market Infrastructure Regulation (EMIR) became law within the European Union in 2012, although certain of its requirements came into force only after a period of delay.

The objective of EMIR is to reduce the risks posed to financial systems from the vast web of Over the counter (OTC) derivative transactions and the large contingent credit exposures that may arise as a consequence.

The Regulation achieves this object by three significant requirements for:

1. Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
2. Reporting of all derivative transactions to a trade repository
3. Risk mitigation measures for all non cleared derivatives including collateral exchange and confirmation and reconciliation procedures

See also

• Buy-side firm
• Dodd-Frank
• Dual reporting
• ESMA
• European Union
• Infrastructure
• MiFID
• Trade repository
• Legal entity identifier
• AIFMD
• CCP
• CSD
• FC
• NFC
• RTS
• SSR
• UTI
• SEC
• CFTC
• WGMR
• MCT
• FATCA
• Know-your-customer

Other links

ACT briefing note: European regulation of OTC derivatives: Implications for non-financial companies, April 2013

EMIR edges near, The Treasurer, September 2013

Frequently Asked Questions for non financial counterparties - updated December 2013

Companies hope for relief from EMIR, Sally Percy, The Treasurer, February 2014

ACT's EMIR Consultation Response, August 2015