EMIR and Ratification: Difference between pages

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''Financial markets - regulation - infrastructure.''
1. ''International law''.


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.
Approval of an international treaty by the relevant head of state, or the head of state and the legislature, when necessary to bring the treaty into force.


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.
Most international treaties state expressly whether or not ratification is required, to make them effective.




The Regulation is designed to achieve this objective by three significant requirements for:
2. ''Contract law - agency.''


#Central clearing and margining of standardised OTC derivatives (with certain exemptions for Non-Financial Counterparties)
Confirmation or adoption of an act, where necessary for it to have legal effect.
#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


For example, if an agent - without authority - forms a contract with a third party, the principal can ratify and adopt the contract, making it fully effective and enforceable.


== 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]]
* [[Regulation]]
* [[Regulatory Technical Standard]]  (RTS)
* [[Securities and Exchange Commission]]  (SEC)
* [[Trade repository]]
* [[UK EMIR]]
* [[UTI]]
* [[WGMR]]


3. ''Company law - sanctioning minor irregularities.''


==External link ==
In the case of minor irregularities in running a company, a general meeting can pass a resolution to sanction the irregularity.
*[https://www.fca.org.uk/markets/uk-emir UK EMIR - Financial Conduct Authority]
 
Major irregularities cannot be sanctioned in this way, for example ''ultra vires'' acts, or a fraud on the minority.
 
 
''Source: Oxford Dictionary of Law, 8th Edition''
 
 
==See also==
*[[Agent]]
*[[Company law]]
*[[Comprehensive and Progressive Agreement for Trans-Pacific Partnership]]
*[[Contract]]
*[[Fraud on the minority]]
*[[Free trade agreement]]
*[[General meeting]]
*[[International law]]
*[[International trade]]
*[[Law]]
*[[Legislature]]
*[[Resolution]]
*[[Sanction]]
* [[Treaty]]
*[[Ultra vires]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_financial_management]]
[[Category:Corporate_finance]]
[[Category:Risk_frameworks]]
[[Category:Manage_risks]]

Latest revision as of 13:32, 18 July 2022

1. International law.

Approval of an international treaty by the relevant head of state, or the head of state and the legislature, when necessary to bring the treaty into force.

Most international treaties state expressly whether or not ratification is required, to make them effective.


2. Contract law - agency.

Confirmation or adoption of an act, where necessary for it to have legal effect.

For example, if an agent - without authority - forms a contract with a third party, the principal can ratify and adopt the contract, making it fully effective and enforceable.


3. Company law - sanctioning minor irregularities.

In the case of minor irregularities in running a company, a general meeting can pass a resolution to sanction the irregularity.

Major irregularities cannot be sanctioned in this way, for example ultra vires acts, or a fraud on the minority.


Source: Oxford Dictionary of Law, 8th Edition


See also