Confirmation and EMIR: Difference between pages

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1. ''Treasury controls.''
''Financial markets - regulation - infrastructure.''


A confirmation is a document through which a market participant notifies its counterparties or customers of the details of a trade/transaction and, typically, allows them time to affirm or question the trade/transaction.
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 issue and matching of confirmations is one of the key controls in treasury dealing activity.   
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.   


Increasingly confirmations are being transmitted and matched by electronic means, but the same rules, relating to the separation of the dealing function from the confirmation function, still apply.


The Regulation achieves this object by three significant requirements for:


2.
#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


Similar notifications in other contexts.


== See also ==
* [[AIFMD]]
* [[Buy-side firm]]
* [[Central counterparty]]  (CCP)
* [[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]]
* [[Regulatory Technical Standard]]  (RTS)
* [[Securities and Exchange Commission]]  (SEC)
* [[SSR]]
* [[Trade repository]]
* [[UK EMIR]]
* [[UTI]]
* [[WGMR]]


==See also==
* [[Confirm]]
* [[Confirmation bias]]
* [[Confirmation of Payee]]
* [[Confirmed letter of credit]]
* [[Confirming bank]]
* [[Confirming house]]
* [[Conforming documents]]
* [[Controls]]
* [[Settlement]]


[[Category:Compliance_and_audit]]
==External link ==
[https://www.fca.org.uk/markets/uk-emir UK EMIR - Financial Conduct Authority]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_financial_management]]
[[Category:Risk_frameworks]]

Revision as of 15:34, 7 April 2022

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 achieves this object 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 link

UK EMIR - Financial Conduct Authority

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