EMIR
European Market Infrastructure Regulation
EU regulation governing derivatives markets, central counterparties, and trade repositories.
EMIR requires central clearing of standardized OTC derivatives, mandatory reporting to trade repositories, and risk mitigation for non-centrally cleared trades. The regulation aims to reduce systemic risk in derivatives markets following the 2008 financial crisis. EMIR applies to all derivatives contracts entered into by EU entities or with EU counterparties. Central counterparties (CCPs) must be authorized and meet strict operational and financial requirements. Trade repositories collect and maintain records of derivatives transactions for regulatory oversight. Non-financial counterparties above clearing thresholds must comply with clearing obligations. EMIR also includes margin requirements for non-centrally cleared derivatives and operational risk standards.
Example
Interest rate swaps cleared through LCH, CDS transactions reported to DTCC repository