What is EMIR and what does it seek to do?

EMIR (European Market Infrastructure Regulation) is a European Union (EU) regulation, introduced in 2012 and forms part of the EU’s regulatory response to the financial crisis. EMIR sets out to increase transparency and reduce systematic risk in over-the-counter (OTC) derivative and exchange-traded derivative (ETD) markets, as well as establishing conduct of business standards for both Central Counterparties (CCPs) and Trade Repositories.

Measures taken to achieve this goal include clearing all standardised OTC derivatives contracts through central counterparties (CCPs) and OTC derivatives contracts being reported to trade repositories.

Under EMIR, all in scope financial counterparties (FCs) and non-financial counterparties (NFCs) are required to report details of derivative contracts they have concluded (and any modification or termination of the contract) to a trade repository registered with ESMA, no later than the following business day (T+1). 

EMIR regulation was revisited by the EU and updated to create ‘EMIR Refit’ presenting a new set of challenges. EMIR Refit will be implemented in a phased go-live, which started in May 2019 and is expected to finish in 2024.

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