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.
It came into force in August 2012 and covers three 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 have to provide reports to their corresponding trade repository, highlighting each over the counter trade.
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.
Working out the full implications of EMIR continues to be a pressing issue for many firms. To learn more how the SteelEye platform can help, Book a Demo by clicking the button below.