EMIR—essentials
EMIR—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • EMIR—essentials
  • EMIR—Introduction
  • Key requirements
  • EMIR level 2 and level 3 measures
  • EMIR REFIT
  • EMIR 2.2
  • Derivatives and OTC derivatives
  • Clearing obligation
  • What is the clearing obligation?
  • Which OTC derivative contracts have been declared subject to the clearing obligation?
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

EMIR—Introduction

Key requirements

The European Market Infrastructure Regulation (EU) 648/2012 (EMIR) is the principal EU measure regulating the over the counter (OTC) derivatives market. Its key elements are:

  1. a requirement to clear standardised OTC derivatives through a central counterparty (CCP)—see Clearing obligation below

  2. a requirement to report derivative contracts to a trade repository (TR)—see Trade reporting obligation below

  3. margin requirements for non-centrally cleared OTC derivatives—Margin requirements below, and

  4. additional risk mitigation requirements for uncleared trades, including timely confirmation, portfolio reconciliation, portfolio compression and dispute resolution—see Additional risk mitigation requirements below

EMIR level 2 and level 3 measures

For an overview of the technical standards (TS) adopted by the European Commission, guidelines published by the European Securities and Markets Authority (ESMA), and related consultations, final reports and technical advice, see Practice Note: European Market Infrastructure Regulation (EMIR)—level 2 and level 3 measures.

EMIR REFIT

This Practice Note describes the requirements of EMIR as amended, where applicable, by EMIR REFIT

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