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EMIR

European Market Infrastructure Regulation (EMIR)

As a result of the turbulences caused by the global financial crisis, regulators worldwide increasingly focus on derivatives markets. Given the enormous risks posed by the unregulated over-the-counter (OTC)-market, there is a growing recognition that greater transparency in exchange trading significantly contributes to the future stability of the international financial markets. This is where the European Market Infrastructure Regulation (EMIR) comes in.

Objective

At the 2009 G20 summit in Pittsburgh, the members' heads of state and government came to the agreement that, by the end of 2012, all standardised derivatives contracts will have to be cleared through central counterparties (CCPs). In addition, large parts of OTC trading will have to be settled on a collateralised basis and reported to central trade repositories. Within the European Union, this objective is implemented through EMIR.

Time line

EMIR entered into force in 2012. The obligation to report all derivatives trades to a trade repository became applicable in late 2013. Most European CCPs were authorised as EMIR-compliant CCPs in the first half of 2014. The obligation to use a CCP to clear bilaterally agreed-upon trades has been phased in starting in July 2016.

EMIR: the highlighted parts of the value chain are affected

EU derivatives regulation

EU derivatives regulation has achieved a lot in terms of financial stability. However, both the Brexit and the amount of central clearing show that further steps are needed to continue the success story of EU derivatives regulation.

Incentives to centrally clear OTC derivatives

Eurex Clearing is pleased to respond to the consultation following the FSB survey on the G20 financial regulatory reforms. The wide attention of the consultation, also by relevant industry associations (i.e. EACH and CCP12), confirms the importance of the topic.

Video: what is behind the new EMIR standards?

John Kernan, Head of Project Management at REGIS-TR, explains the reasoning behind the new EMIR revised technical standards (RTS) as well as their benefits.

FSB releases video about regulatory reforms

In advance of the G20 Leaders’ summit, the Financial Stability Board’s video explains how regulatory reforms have made the financial system safer, simpler and fairer.

European Commission publishes EMIR legislative proposal (batch 1)

The European Commission proposes some targeted reforms to improve the functioning of the derivatives market in the EU. The reforms shall provide simpler and more proportionate rules for OTC derivatives to reduce costs and regulatory burdens for market participants without compromising financial stability.

EMIR reporting requirements

We provide our customers efficient support and solutions to meet their reporting requirements under article 9 EMIR. Detailed information on requirements and services of each entity can be found here: Clearstream, Eurex Clearing, REGIS-TR.