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European Market Infrastructure Regulation<ref>http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:201:0001:0059:EN:PDF</ref> (EMIR) came into force as binding law within the European Union on 16th August 2012, although certain of its requirements came into force after a period of delay.
''Financial markets - regulation - infrastructure.''


The objective of EMIR is to reduce the risks posed to financial systems from the vast web of [[Over the counter]] (OTC) derivative transactions and the contingent large credit exposures that may arise as a consequence. The Regulation achieves this object by three significant requirements for:
The European Market Infrastructure Regulation (EMIR) became law within the European Union in 2012, although certain of its requirements came into force only after a period of delay.


• Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
The objective of EMIR is to reduce the risks posed to financial systems from the vast web of [[over the counter]] (OTC) derivative transactions and the large contingent credit exposures that may arise as a consequence. 


• Reporting of all derivative transactions to a trade repository


Risk mitigation measures for all non cleared derivatives including collateral exchange and  confirmation and reconciliation procedures
The Regulation is designed to achieve this objective by three significant requirements for:
 
#Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
#Reporting of all derivative transactions to a trade repository
#Risk mitigation measures for all non cleared derivatives including collateral exchange and  confirmation and reconciliation procedures




== See also ==
== See also ==
* [[ESMA]]
* [[AIFMD]]
 
* [[Buy-side firm]]
* [[Central counterparty]]  (CCP)
* [[Commodity Futures Trading Commission]]  (CFTC)
* [[Clearing]]
* [[Central securities depository]]  (CSD)
* [[Derivative instrument]]
* [[Dodd-Frank]]
* [[Dual reporting]]
* [[European Securities and Markets Authority]]  (ESMA)
* [[European Union]]
* [[FATCA]]
* [[FC]]
* [[Infrastructure]]
* [[Know-your-customer]]
* [[Legal entity identifier]]
* [[Margining]]
* [[MiFID]]
* [[MiFID II]]
* [[NFC]]
* [[Over the counter]]  (OTC)
* [[Pension Scheme Arrangement]]
* [[Regulation]]
* [[Regulatory Technical Standard]]  (RTS)
* [[Securities and Exchange Commission]]  (SEC)
* [[Trade repository]]
* [[UK EMIR]]
* [[UTI]]
* [[WGMR]]


==External links==
ACT briefing note: European regulation of OTC derivatives: Implications for non-financial companies http://www.treasurers.org/otc


==External links ==
*[https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/financial-markets/post-trade-services/derivatives-emir_en EMIR - European Union]
*[https://www.fca.org.uk/markets/uk-emir UK EMIR - Financial Conduct Authority]


==References==
[[Category:Accounting,_tax_and_regulation]]
<references />
[[Category:Risk_frameworks]]

Latest revision as of 19:59, 26 July 2024

Financial markets - regulation - infrastructure.

The European Market Infrastructure Regulation (EMIR) became law within the European Union in 2012, although certain of its requirements came into force only after a period of delay.

The objective of EMIR is to reduce the risks posed to financial systems from the vast web of over the counter (OTC) derivative transactions and the large contingent credit exposures that may arise as a consequence.


The Regulation is designed to achieve this objective by three significant requirements for:

  1. Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
  2. Reporting of all derivative transactions to a trade repository
  3. Risk mitigation measures for all non cleared derivatives including collateral exchange and confirmation and reconciliation procedures


See also


External links