European Market Infrastructure Regulation

"EMIR" redirects here. For the title, see Emir.

European Market Infrastructure Regulation (EMIR) is a European Union regulation designed to increase the stability of the over-the-counter (OTC) derivative markets throughout the EU states. It is designated Regulation (EU) 648/2012, and it entered into force on 16 August 2012.[1]

Overview

G20 leaders made a commitment in Pittsburgh in September 2009 that:

All standardised OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements. We ask the Financial Stability Board and its relevant members to assess regularly implementation and whether it is sufficient to improve transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.[2]

EMIR introduces:

According to the first analysis of the provisions of (EU) Regulation No. 648 of 2012 (EMIR), these rules try to satisfy the need to avoid certain practices of negotiating – privately and on the basis of information available only to the contracting parties – some types of financial instruments (and, in particular, derivatives).

Some authors focus on the rules aimed at increasing capital markets transparency and safety, in line with the evolution of communication processes and centralization of data in warehouses available to any financial operator. Today, this centralization sets the stage for a new setup of financial transactions. The implementation of EMIR provisions, and appropriate clearing and reporting mechanisms, affects the organization of an industry, and it will ensure more effective protection of the "right to information". The relevant research shows EMIR will impact key factors of a ‘market for financial information’, which is not yet considered a reality by EU regulators. It is believed the EU will consider, and regulate, all the activities related to supply and demand of information about market trends and financial instruments' features.[4]

See also

References

  1. ↑ "European Market Infrastructure Regulation (EMIR)". European Securities and Markets Authority. Retrieved 22 January 2016.
  2. ↑ "About EMIR" (PDF). Financial Services Authority. Retrieved 20 February 2012.
  3. ↑ "European Market Infrastructure Regulation (EMIR) Risk Mitigation Techniques". European Securities and Markets Authority. Retrieved 22 January 2016.
  4. ↑ "See Lemma (2015), Financial Information Regulation and Emir Principles, in Open review of management banking and finance, p. 8 ff. About EMIR".

External links

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