European Market Infrastructure Regulation (EMIR)

posted Jan 3, 2014, 3:42 AM by David Larratt   [ updated Jan 3, 2014, 3:45 AM ]

Derivative Reporting for EMIR begins from 12th February 2014.

The main obligations under EMIR are:

  • Central Clearing for certain classes of OTC derivatives;
  • Application of risk mitigation techniques for non-centrally cleared OTC derivatives;
  • Reporting to trade repositories;
  • Application of organisational, conduct of business and prudential requirements for CCPs;
  • Application of requirements for Trade repositories, including the duty to make certain data available to the public and relevant authorities.

♦ Risk mitigation techniques include: timely confirmation, portfolio reconciliation and compression, dispute resolution, marking-to-market and marking-to-model,  the exchange of collateral and  adequate capital to cover the exposures arising from OTC derivatives not cleared by a CCP. The draft technical standards related to the exchange of collateral and adequate capital are in the process of being developed.