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. The most important aim of the European Markets Infrastructure Regulation (EMIR) is to increase the transparency of the over the counter (OTC) derivatives market, so that the EU with the help of European Securities and Markets Authority (ESMA) to have a clear view about the turnover, participants and any possible market manipulation. Another objective is to reduce the number of the counterparties involved and reduce the operational risk for market participants.

On 29 April 2024 EMIR REFIT, i.e. regulatory technical standards (RTS) and implementing technical standards (ITS) will apply. Some of the key changes cover: ISO 20022 XML message standard for submissions to EU TRs and responses from EU TRs; Unique Product Identifier (UPI); Unique Trade Identifier (UTI) generation in line with the global UTI guidance; increase of the number of reportable fields to 203; notifications to the relevant competent authority in case of any misreporting, significant issues, etc.

Reporting obligation

(under Art. 9 of EMIR)

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Clearing obligation

(under Art. 4 of EMIR)

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Risk
mitigation

(non-cleared OTC derivatives)

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