European Market Infrastructure Regulation (EMIR)

What is EMIR?

The European Market Infrastructure Regulation (EMIR) is an obligation to report all derivatives to trade repositories; a central clearing obligation for eligible OTC derivatives; measures to reduce counterparty credit risk and operational risk for bilaterally cleared OTC derivatives; as well as common rules for central counterparties (CCPs) and for trade repositories.

EMIR Refit timeline

 
  • In June 2022 the European Commission endorsed the EMIR Refit Standard
  • The three-month non-objection period for the Parliament and Council is expected to end on 10 September 2022
  • The publication in the Official Journal should take place soon after

Which firms are affected?

Are you prepared for EMIR refit?

  • All counterparties to all derivative transactions
  • Includes financial and non-financial counterparties
  • Under EMIR, a counterparty outside the EU does not have to report to a trade repository

Key points at a glance

Covers all derivative transactions:

- Equity, interest rate, currency, commodity, credit, “other”
- Includes OTC and exchange traded derivatives
- Differs from Dodd Frank by including ETDs -
- No exemptions for “non-EEA derivatives”
- Trading venue and underlying assets are irrelevant
- No exemptions for index or basket products
- Includes retail derivatives such as spreadbets
- Exchange-traded warrants are not included

No threshold below which transactions are not reportable
Includes modifications:

- Novations
- Terminations
- Partial terminations 

Trade repositories receive derivative trade details from different sources and make the information available to all relevant regulators (and a subset of information available to the public). Trade repository information:

  • Helps detect systemic risk through position information
  • Increases market transparency leading to greater understanding and increased confidence
  • Determines and manage counterparty exposure in the event of a firm collapse

How can LSEG Post Trade help?

When harnessed, regulation can be powerful. Through years of expertise and trusted data accuracy, Regulatory Reporting can help you reframe regulation, so it’s no longer a hindrance, but an opportunity. Find out how our EMIR Reporting solution can help.

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Disclaimer

Content on this page is not intended as an exhaustive or definitive guide to the regulations, and is not the views of LSEG, but for general information purposes only. For detailed and up to date guidance on regulation you should always seek specialist advice and/or consider the actual regulation itself.