What are the EMIR reporting requirements?
Who has an EMIR reporting obligation? EMIR requires all counterparties and CCPs to report details of any derivative contract (with the underlying asset classes – interest rate, FX, credit, equities and commodities) they have concluded and of any modification or termination to TRs.
What is difference between EMIR and MiFID?
EMIR focuses on three primary objectives: reporting, clearing, and risk mitigation. However, the scope of MiFID II is limited to OTC derivatives. The clearing obligation under EMIR also applies to FCs and NFCs both of which need to clear OTC derivative trades through an authorized CCP.
What is reported under EMIR?
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.
What 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.
Why is EMIR regulated?
The European Market Infrastructure Regulation (EMIR) is an EU regulation aimed at reducing systemic counterparty and operational risk and thereby prevent future financial system collapses. Its focus is regulation of over-the-counter (OTC) derivatives, central counterparties and trade repositories.
Does EMIR apply to individuals?
EMIR requirements apply both to financial and non-financial counterparties. Requirements of EMIR do not apply to private individuals and certain government institutions.
What is EMIR and remit?
Emir applies to EU-registered companies regardless of the geographic nature of their trades (e.g. a North American electricity swap is in scope), whereas under Remit any wholesale trade, contract (physical or financial) or infrastructure utilisation related to an EU delivery point falls within scope, regardless of the …
When did EMIR reporting go live?
Go-live – UnaVista Trade Repository EMIR RTS system went live on 30 October 2017 .
What is EMIR and ESMA?
ESMA’s main roles in the post-trading area are implementing regulations on the EU’s markets infrastructure (EMIR) and central securities depositories (CSDR), co-ordinating issues such as settlement discipline and Target2-Securities (T2S), and providing information on the Settlement Finality Directive (SFD).
Who does EMIR report apply?
EMIR establishes the reporting obligation on both counterparties that should report the details of the derivative trades to one of the trade repositories (TRs), i.e. the buying party should report and the selling party should report. This obligation covers both financial and non-financial counterparties.
Does EMIR apply to non EU branches?
EMIR applies directly to any entity incorporated or otherwise formed in the EU that has entered into an OTC derivatives transaction and indirectly to any non-EU counterparty that trades with an EU counterparty.
Are central banks exempt from EMIR?
According to Article 1(4) of EMIR, the Union’s central banks and Union public bodies charged with or intervening in the management of the public debt are exempted from EMIR and are therefore not subject to these obligations.
When did regulation Emir come into force?
On 16 August 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 (European Market Infrastructure Regulation or EMIR) entered into force.
What are the objectives of Emir?
Another objective is to reduce the number of the counterparties involved and reduce the operational risk for market participants. EMIR establishes new regulatory requirements on all types and sizes of entities that enter into any form of derivative contract, including those not involved in financial services.
What does Emir stand for?
European Market Infrastructure Regulation (EMIR) Overview. 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 entered in force on 16 August 2012.
What is Article 4A and 10 of EMIR Refit?
Under Articles 4a and 10 of EMIR, as amended by EMIR Refit, where a counterparty (FC or NFC) does not calculate its positions against the clearing threshold, or when the result of the calculation exceeds the clearing thresholds, the counterparty is required to immediately notify the CSSF and ESMA.