The European Market Infrastructure Regulation (EMIR) was introduced by the EU as a consequence of the G20 nations’ commitment to reducing systemic risk in the OTC derivatives market.
Although initially introduced in 2012, EMIR was fully implemented in 2014 and covers three main areas: clearing, reporting and risk mitigation.
Under EMIR’s clearing provisions, all OTC derivatives trades must be cleared through central counterparties. In addition all parties involved in trades must make it known if they are going to approach, exceed or no longer exceed the clearing thresholds defined by EMIR.
EMIR’s reporting requirements mandate that all entities entering into derivatives contracts, be that OTC or on exchange, have to provide reports on a T+1 basis to their corresponding trade repository.
EMIR’s risk mitigation provisions are wide-ranging, and include imposing risk management regulation on bilaterally cleared derivatives, whether the contract involves EU-based firms only, or firms based outside the EU.
As this regulation was introduced across Europe, hundreds of financial firms suddenly needed to find a solution to help them report efficiently and accurately. Several years later and achieving EMIR compliance is still a significant undertaking for firms.
The complexity of the reporting rules has driven up the demand for skilled staff and with only a few EMIR solutions in the market, choice is limited and license fees are high.
Working out the full implications of EMIR continues to be a pressing issue for many firms. SteelEye was launched to help firms Comply SmarterTMand provides firms with a comprehensive EMIR Reporting solution. Book a demo to learn more about how SteelEye can help you comply!
