341:
possibility of extending the extension to 2018. As of May 5, 2015, ESMA has been discussing a fourth consultation, this time revisiting the clearing obligation under EMIR. The 2013 report on clearing indicated a need for further analysis of the classes of OTC interest rate derivatives denominated in other currencies than the ones included in the first report, and the 2015 consultation is expected to present new analysis and invite discussion on these other currencies. The consultation is expected to conclude on July 15, 2015.
233:(UTI), legal entity identifier (LEI), information on the trading capacity of the counterparty, and the marked-to-market valuation of the position. The counterparty data in a report includes 26 fields for data and the common data includes 59 fields of data. These fields include an LEI, or a unique 20 digit alphanumeric code that may be used for eight of the 26 counterparty data fields, and the unique trade identifier, which are generated based on the report's LEI.
239:, which are large-scale transactions of shares, and any subsequent allocations must be reported to the fund manager, but block trades concluded by a TR are not subject to the obligation. If the block trade is allocated to the manager's individual funds on the trade date, only the allocations need to be reported. In the event that the block trade is not allocated on the trade date, the block itself must be reported with the fund manager as counterparty.
330:
difficulties, ESMA announced that trade repositories should send back incomplete reports to counterparties, asking for their rectification, instead of trying to reconcile them. In
November 2013, ESMA published the final draft on EMIR's technical standards in regards to non-EU counterparties. In January 2014, mandatory transaction reporting for OTC derivatives began under EMIR.
300:(ESMA) began developing technical standards on regulation of OTC derivatives, central counterparties and trade repositories to implement EMIR in February 2012. ESMA released a discussion paper on the topic, and in March 2012, the Authority held a public discussion in Paris to receive input on the questions put forth in the discussion paper.
349:
A review of the regulation was published in the EU Official
Journal on May 28, 2019. The review, known as EMIR Refit, was proposed by the European Commission to minimise the compliance burden on small financial and non-financial counterparties. Among other changes, the thresholds to be subject to the
149:
It establishes common rules for central counterparties, which interpose themselves between involved parties in a contract to serve as the focal point of each trade, and trade repositories, which collect and maintain all records of trades. EMIR requires the reporting of all derivatives, whether OTC or
333:
On
October 1, 2014, ESMA began a consultation on EMIR's clearing obligation. The consultation closed on November 6, 2014. ESMA published the eleventh iteration of its Q&A report on EMIR on October 24, 2014. In the report, ESMA announced that any third country firm not originally subject to EMIR
329:
In
September 2013, new obligations embedded into EMIR took effect, requiring EU banks and their counterparties to discuss and agree on processes and procedures for portfolio reconciliation and dispute resolution of derivatives executed in the OTC market. In October 2013, in response to the reported
322:
In July 2013, the
European Commission adopted a Delegated EMIR Regulation to include the central banks and debt management offices in Japan and the United States to be exempt from EMIR. On July 12, 2013, ESMA published a discussion paper specifically describing the clearing obligation as defined by
190:
related to their bilateral OTC derivatives. EMIR also covers trades that are not cleared by a central counterparty, and entities that qualify must submit all OTC derivatives subject to a mandatory clearing obligation for review. Counterparties must file reports wherever they enter into derivatives
484:
263:
over the counter derivatives, or applying any associated fees to sellers alone, as this practice typically increases systemic risk. Other risk mitigation techniques as defined by EMIR include timely submission of reports and confirmations of adherence to regulation by all counterparties, and open
340:
Mandatory reporting for exchange-traded derivatives began in
January 2015, and in February of the same year, a European Commission report recommended an extension to the exemption until August 2017. As of March 2015, EMIR's regulations are under analysis in regards to pension funds, with the
255:
and industry efforts. Under EMIR, the risk mitigation regime applies to contracts involving both EU countries and over the counter derivative contracts involving third country entities. The risk mitigation standards outlined in EMIR's
Article 11 impose risk management regulation on bilateral
207:
obligations for specific OTC derivative contracts if a contract has been assigned a central counterparty under EMIR. The obligations require that over-the-counter derivatives trades are cleared through central counterparties. EMIR granted a temporary exemption from these guidelines to
308:
On June 25, 2012, ESMA released a consultation paper publicizing its proposed technical standards. In July, ESMA hosted another open hearing in Paris. The authority released a final draft technical standards to the
European Commission on September 27, 2012.
495:
215:
All parties involved in trades must submit timely notifications of approaching, exceeding, and no longer exceeding the clearing threshold as defined by EMIR. This clearing regulation applies to financial counterparties such as banks, insurers, and
312:
EMIR entered into force on August 16, 2012, but most of its provisions only began to apply after a regulation's technical standards take place. These technical standards were adopted by the
European Commission on December 19, 2012.
185:
Entities that qualify for EMIR must report every derivative contract they enter into to a trade repository. They must also implement new risk management standards according to EMIR, including operational processes and
228:
EMIR requires that all entities entering into derivative contracts must submit reports to their corresponding trade repositories, outlining each over-the-counter trade. These mandatory reports must also include a
326:
In August 2013, UK Parliament reviewed a second EMIR statutory instrument, which outlines additional supervisory and enforcement powers allotted to central counterparties during trading and clearing.
316:
After more discussion and public reports, EMIR was published in the
Official Journal of the European Union on July 27, 2012, and the technical standards of EMIR came into effect on March 15, 2013.
334:
trade reporting obligations that subsequently becomes a financial counterparty subject to EMIR must comply with the EMIR reporting obligation in respect of all outstanding derivatives contracts.
114:
The European Market Infrastructure Regulation (EMIR) is EU regulation for over-the-counter (OTC) derivatives, central counterparties and trade repositories. EMIR was introduced by the
665:
268:
between involved parties. Other techniques include a new dispute resolution process, daily market reports and exchanges and the public exchange of collateral between parties.
1153:"Draft technical standards under the Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC Derivatives, CCPs and Trade Repositories"
1188:
1276:
350:
clearing obligations have been revised and an obligation for financial counterparties to report trades on behalf of non-financial counterparties has been introduced.
691:
593:
319:
Many involved parties expressed difficulty reporting during the first six months of the regulations being in effect, and many experienced delays in reporting.
1339:
809:
1301:
982:
1394:
777:
724:
918:
1334:
251:. EMIR, and other legislation like it, aim to reduce systemic risk in part by increasing regulations on clearing and trading, which decreases
810:"European Market Infrastructure Regulation (EMIR): Incomplete Reports Will Be Sent Back, Creating Costs and Other Burdens for Counterparties"
455:
669:
379:
337:
ESMA conducted another consultation on the technical standards of reporting under EMIR between November 10, 2014 and February 3, 2015.
369:
297:
1152:
893:
281:
Regulation (EU) No 648/2012, as EMIR is referred to in European legal documentation, was implemented in 2012 through the standard
1218:
106:
The regulation was initially adopted in 2012 and an amended version, the EMIR Refit regulation, was later on adopted in 2019.
948:
260:
174:. It also outlines three sets of obligations, including the clearing, reporting and risk mitigation of applicable products.
95:. It provides steer on reporting of derivative contracts, implementation of risk management standards and common rules for
1349:
636:
1384:
1078:
520:
699:
1041:
1008:
1345:
ESMA consultation paper – Draft Technical Standards for the Regulation on OTC Derivatives, CCPs and Trade Repositories
958:
840:
83:
counterparty and operational risk and thereby prevent future financial system collapses. Its focus is regulation of
1127:
1379:
1305:
986:
983:"EMIR News Archive: European Commission response to ESMA letter regarding frontloading requirement under EMIR"
1374:
286:
230:
143:
88:
35:
374:
1243:
781:
728:
412:
398:
212:
until August 2017. This exemption was further extended in a review of the regulation until 18 June 2021.
177:
EMIR's set of obligations were designed to take effect on a phased basis over a period of several years.
151:
76:
154:
traded, to a trade repository. EMIR covers entities that qualify for derivative contracts in regards to
84:
256:
derivatives, as these derivatives are not appropriate for standard central counterparty clearing.
459:
359:
163:
1389:
1369:
192:
1244:"Adoption of a Delegated Regulation on the list of exempted entities under EMIR – 12.07.2013"
282:
17:
1105:
127:
119:
96:
8:
1354:
290:
265:
138:. It was also designed as a preventative measure to avoid fallout during possible future
31:
1163:
549:
485:"Implications of a Financial Transaction Tax for the European Regulatory Reform Agenda"
204:
135:
1344:
954:
167:
571:
364:
217:
187:
171:
159:
139:
131:
100:
92:
1189:"JWG regulatory trading digest - The end of the beginning: conclusions from Paris"
870:
753:
252:
115:
1350:
Challenges of EMIR Delegated Reporting for Derivatives Trades at RiskFocus.com
1363:
248:
155:
123:
80:
1329:
209:
456:"European Market Infrastructure Regulation (EMIR) – what you need to know"
236:
919:"Keeping transaction reporting up to scratch: you know it makes sense!"
203:
The European Securities and Markets Authority (ESMA) applies mandatory
1340:
European Commission – Financial Markets Infrastructure – Derivatives
594:"Evolving post-trade requirements in the new regulatory environment"
668:. Financial Conduct Authority. 10 January 2013. Archived from
894:"Focus on customisation to support HF operational workflows"
692:"One Minute Guide - EU Regulation on OTC derivatives (EMIR)"
1162:. European Securities and Markets Authority. Archived from
727:. European Securities and Markets Authority. Archived from
293:, which set out a detailed framework for the legislation.
666:"Obligations for non-financial counterparties under EMIR"
323:
EMIR. The discussion was closed on September 16, 2013.
1335:
European Commission – Financial Markets Infrastructure
247:
One of EMIR's central purposes is to manage and avoid
458:. Financial Conduct Authority. 2014. Archived from
1271:
1269:
1267:
1265:
1263:
1261:
1219:"Industry divided as regulators mull NDF clearing"
1009:"Commission Delegated Regulation (EU) No 149/2013"
1361:
911:
1258:
719:
717:
1100:
1098:
1096:
974:
950:EU Securities and Financial Markets Regulation
891:
807:
1304:. Financial Conduct Authority. Archived from
1296:
1294:
985:. Financial Conduct Authority. Archived from
946:
770:
1036:
1034:
942:
940:
865:
863:
861:
714:
1279:. European Securities and Markets Authority
1216:
1093:
1081:. European Markets and Securities Authority
1073:
1071:
1069:
1067:
873:. European Securities and Markets Authority
838:
684:
631:
629:
627:
625:
623:
621:
619:
617:
615:
220:, as well as non-financial counterparties.
16:"EMIR" redirects here. For other uses, see
1291:
1212:
1210:
885:
513:
479:
477:
380:Markets in Financial Instruments Directive
142:similar to the collapse that followed the
1395:2012 establishments in the European Union
1236:
1108:. The European Commission. 21 August 2012
1031:
1001:
937:
858:
834:
832:
830:
803:
801:
799:
778:"OTC derivatives and clearing obligation"
725:"OTC derivatives and clearing obligation"
370:European Securities and Markets Authority
298:European Securities and Markets Authority
69:European Market Infrastructure Regulation
26:European Market Infrastructure Regulation
1064:
953:. Oxford University Press. p. 580.
612:
542:
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1207:
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134:, and increase transparency in the OTC
1362:
1145:
1046:Official Journal of the European Union
1013:Official Journal of the European Union
827:
796:
1181:
1120:
754:"EUR-Lex - 32019R0834 - EN - EUR-Lex"
748:
746:
658:
586:
530:. Bloomberg Business. 4 February 2014
980:
841:"EMIR Reporting Technical Standards"
419:
1133:. European Commission. 10 July 2014
13:
1128:"EMIR: Frequently asked questions"
743:
264:reconciliation and compression of
242:
85:over-the-counter (OTC) derivatives
14:
1406:
1323:
698:. 9 December 2014. Archived from
344:
1217:David Wigan (12 November 2014).
808:Charlotte Hill (28 July 2014).
1330:The EMIR regulation on EUR-Lex
892:James Williams (19 May 2015).
405:
391:
180:
118:(EU) as implementation of the
1:
385:
287:Council of the European Union
231:Unique Transaction Identifier
36:Council of the European Union
375:European Systemic Risk Board
223:
7:
845:Financial Conduct Authority
696:Financial Conduct Authority
353:
198:
109:
10:
1411:
1385:European Union regulations
1019:(11). European Union. 2013
492:City of London Corporation
303:
276:
271:
259:EMIR also advises against
144:Lehman Brothers bankruptcy
15:
1355:European Trade Repository
1193:Automated Trader Magazine
644:Bloomberg Business Briefs
521:"EMIR SPECIAL ISSUE 2014"
57:
49:
41:
30:
25:
1277:"Consultations Overview"
550:"Central Counterparties"
1302:"FCA EMIR News Archive"
360:Swap Execution Facility
1106:"Codecision Flowchart"
1052:. European Union. 2012
947:Niamh Moloney (2014).
780:. ESMA. Archived from
193:European Economic Area
97:central counterparties
89:central counterparties
1380:Derivatives (finance)
637:"EMIR Special Report"
574:. European Commission
552:. European Commission
283:co-decision procedure
191:transactions, in the
172:commodity derivatives
18:Emir (disambiguation)
1375:Financial regulation
1079:"Derivatives / EMIR"
981:ESMA (8 July 2014).
572:"Trade Repositories"
494:: 11. Archived from
923:FTSE Global Markets
814:National Law Review
291:European Parliament
61:Current legislation
32:European Parliament
1223:Euromoney Magazine
218:managers of assets
136:derivatives market
101:trade repositories
93:trade repositories
79:aimed at reducing
871:"Trade Reporting"
839:Victoria Cooley.
758:eur-lex.europa.eu
413:"EMIR Refit 2019"
65:
64:
45:December 19, 2012
1402:
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672:on 16 March 2015
662:
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528:Bloomberg Briefs
525:
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489:
481:
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469:
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462:on 17 March 2015
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365:Trade Repository
164:foreign exchange
140:financial crises
132:operational risk
23:
22:
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1169:on 9 April 2015
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869:
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849:
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837:
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797:
787:
785:
784:on 16 July 2015
776:
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734:
732:
731:on 16 July 2015
723:
722:
715:
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690:
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664:
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649:
647:
639:
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600:. 22 March 2015
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531:
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501:on 5 March 2016
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243:Risk mitigation
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12:
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5:
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1382:
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1357:
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1325:
1324:External links
1322:
1320:
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1308:on 17 May 2015
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1119:
1092:
1063:
1030:
1000:
989:on 17 May 2015
973:
959:
936:
910:
884:
857:
826:
795:
769:
742:
713:
702:on 16 May 2015
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389:
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345:Level 1 Review
343:
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195:or elsewhere.
182:
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120:G20 commitment
116:European Union
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63:
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55:
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53:March 15, 2013
51:
47:
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39:
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28:
27:
9:
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3:
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1390:Corporate law
1388:
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1370:Systemic risk
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1107:
1101:
1099:
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1080:
1074:
1072:
1070:
1068:
1051:
1047:
1043:
1042:"Regulations"
1037:
1035:
1018:
1014:
1010:
1004:
988:
984:
977:
962:
960:9780199664344
956:
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210:pension funds
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77:EU regulation
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33:
29:
24:
19:
1310:. Retrieved
1306:the original
1281:. Retrieved
1247:. Retrieved
1238:
1226:. Retrieved
1222:
1197:. Retrieved
1192:
1183:
1171:. Retrieved
1164:the original
1160:Final Report
1159:
1147:
1135:. Retrieved
1122:
1110:. Retrieved
1083:. Retrieved
1054:. Retrieved
1049:
1045:
1021:. Retrieved
1016:
1012:
1003:
991:. Retrieved
987:the original
976:
964:. Retrieved
949:
927:. Retrieved
925:. 5 May 2015
922:
913:
901:. Retrieved
897:
887:
875:. Retrieved
848:. Retrieved
844:
817:. Retrieved
813:
786:. Retrieved
782:the original
772:
761:. Retrieved
757:
733:. Retrieved
729:the original
704:. Retrieved
700:the original
695:
686:
674:. Retrieved
670:the original
660:
648:. Retrieved
643:
602:. Retrieved
597:
588:
576:. Retrieved
566:
554:. Retrieved
544:
532:. Retrieved
527:
515:
503:. Retrieved
496:the original
491:
464:. Retrieved
460:the original
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328:
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311:
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237:Block trades
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128:counterparty
113:
105:
72:
68:
66:
58:
399:"2012 EMIR"
181:Key aspects
1364:Categories
763:2019-09-13
386:References
289:, and the
266:portfolios
122:to reduce
898:HedgeWeek
224:Reporting
188:margining
146:in 2008.
1249:27 April
1228:30 March
1199:30 March
1173:30 March
1112:13 April
1085:30 March
1056:27 April
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650:30 March
604:30 March
598:Risk.net
534:30 March
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466:30 March
354:See also
205:clearing
199:Clearing
152:exchange
124:systemic
110:Overview
81:systemic
75:) is an
401:. 2022.
304:Level 2
285:of the
277:Level 1
272:History
253:returns
59:Status:
50:Enacted
1312:1 June
1283:1 June
1195:. 2015
1137:1 June
1023:4 June
993:4 June
966:4 June
957:
929:1 June
903:1 June
788:4 June
706:1 June
646:. 2014
578:1 June
556:1 June
168:credit
160:equity
42:Passed
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166:, or
1314:2015
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296:The
170:and
130:and
99:and
91:and
73:EMIR
67:The
34:and
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