What is the European equivalent of an EMIR?
Olivia Carter
What is the European equivalent of an EMIR?
The European Market Infrastructure Regulation (EMIR) is a European Regulation [1] on reporting OTC (over the counter) derivative contracts to trade repositories and clearing standardised OTC derivative contracts through central counterparties (CCPs).
Does EMIR apply to non-EU branches?
EMIR generally applies to all derivative contracts, central counterparties (“CCPs”), Financial Counterparties, trade repositories and, in certain circumstances, to Non-financial Counterparties and trading venues.
What are the EMIR classifications?
EMIR identifies two sub-categories of Non-Financial Counterparties (NFC).
- Credit: EUR1 billion.
- Equity: EUR1 billion.
- Interest Rates: EUR3 billion.
- Foreign exchange: EUR3 billion.
- Commodities and others: EUR3 billion.
Who is responsible for EMIR reporting?
EMIR mandates reporting of all derivatives to Trade Repositories (TRs). TRs centrally collect and maintain the records of all derivative contracts. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.
Is EMIR a regulator?
The European Market Infrastructure Regulation (EMIR) is an EU regulation for the regulation of over-the-counter (OTC) derivatives, central counterparties and trade repositories. It established common rules for central counterparties and trade repositories.
What is the scope of EMIR?
The scope of EMIR is broad, significantly broader than that of Title VII of Dodd-Frank, and will raise issues of compliance for all market participants. The obligations that must be complied with are below, for each obligation also detailed is the date when that obligation has or will enter into force.
Does EMIR apply to central banks?
EMIR applies not only to Financial Counterparties (“FCs”) as regulated entities, but it also extends the supervisory remit of the Central Bank to Non-Financial Counterparties (“NFCs”), the vast majority of which have not had any previous interaction with the Central Bank.
Does EMIR apply to UK?
This note provides an overview of the retained EU law version of EMIR (648/2012) (the Regulation on OTC derivative transactions, central counterparties and trade repositories) (UK EMIR), that has applied in the UK from the end of the Brexit transition period.
Does EMIR apply to branches?
EMIR is not clear on its application to non-EU branches of EU entities or non-EU entities that have branches in the EU. Broadly, the principle is that a branch should be treated as being its parent. But, to the extent it deals with an EU counterparty, the clearing obligation, which is inherently two-way, will apply.
Who is the regulator for EMIR?
The European Securities and Markets Authority (ESMA) began developing technical standards on regulation of OTC derivatives, central counterparties and trade repositories to implement EMIR in February 2012.
Does EMIR apply to individuals?
EMIR requirements apply both to financial and non-financial counterparties. Requirements of EMIR do not apply to private individuals and certain government institutions.
What trades are reportable under EMIR?
EMIR requires reporting of the transaction details for both types of derivatives trades – exchange traded derivatives (ETD) and OTC derivatives.
