What are the EMIR reporting requirements?
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.
Who does EMIR apply to?
EMIR applies to all derivatives identified in Annex 1 Sections C (4) to (10) of The Markets in Financial Instruments Directive (MiFID). The main obligations apply to transactions in over-the-counter (OTC) derivatives but some, for example the reporting obligation, apply to both OTC and exchange-traded derivatives.
Does EMIR cover exchange traded derivatives?
EMIR requires reporting of the transaction details for both types of derivatives trades – exchange traded derivatives (ETD) and OTC derivatives.
What is the difference between NFC+ and NFC?
NFCs have lesser obligations than FCs. But when an NFC breaches a “clearing threshold” it becomes an NFC+, when it is subject to almost the same obligations as FCs (including collateral and valuation reporting). NFCs below the clearing threshold are known as NFC-s.
What is the difference between EMIR and ESMA?
The European Securities and Markets Authority (ESMA) applies mandatory clearing obligations for specific OTC derivative contracts if a contract has been assigned a central counterparty under EMIR. The obligations require that over-the-counter derivatives trades are cleared through central counterparties.
Does EMIR apply to UK?
The European Market Infrastructure Regulation (EMIR) has been onshored into UK legislation via a number of statutory instruments (SIs) and Binding Technical Standards (BTS). A list of UK EMIR onshoring legislation can be found on the UK EMIR library page.
Are FX swaps reportable under EMIR?
In addition to being reportable, Relevant FX Transactions will be subject to the other EMIR requirements (including the requirements in relation to mandatory margining). To date, the Central Bank has not updated its guidance to take account of the Delegated Regulation.
What is the EMIR clearing threshold?
What is the Clearing Threshold? The Clearing Threshold is an amount set by class of OTC derivative contracts. It is set by regulatory technical standards and will be reviewed on a regular basis following public consultation.
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.
Does MiFID 2 apply to the UK?
MiFID II will need to be transposed into UK law by 3 July 2017, and MiFID II and MiFIR will apply in the UK from 3 January 2018, unless the terms of withdrawal are agreed before that date.
Does MiFID 2 replace MiFID?
A new law, known as MiFID II, has since replaced MiFID. The EU hoped that the directive would help to increase competition amongst investment services while also boosting consumer protection and providing harmonious regulations for all participating states.
Does MiFID II apply to UK?
Are derivatives regulated in UK?
The global financial crisis hit in 2008 and the G20 committed to strengthen the regulatory oversight of the then largely unregulated OTC derivatives market. Over the years that followed, the UK, as a member of the EU, implemented swathes of European regulation affecting OTC derivative transactions.
What are the rules on derivatives contracts in the EU?
EU rules on derivatives contracts. Derivatives play an important role in the economy, but they also bring certain risks. These risks were highlighted during the 2008 financial crisis, when significant weaknesses in the OTC derivatives markets became evident. In 2012 the EU adopted the European market infrastructure regulation (EMIR).
What is the European market infrastructure regulation (emir) for OTC derivatives?
These risks were highlighted during the 2008 financial crisis, when significant weaknesses in the OTC derivatives markets became evident. In 2012 the EU adopted the European market infrastructure regulation (EMIR). The aims were to increase transparency in the OTC derivatives markets
What is EU Regulation 648/2012?
Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories
How does Emir ensure the transparency of derivative contracts?
To increase transparency, EMIR provides that all information on all European derivative contracts must be reported to trade repositories and made accessible to supervisory authorities, including the European Securities and Markets Authority (ESMA).
