EMIR Overview

The European Market Infrastructure Regulation (EMIR) on over-the-counter (OTC) derivatives, central counterparties (CCPs) and trade repositories (TRs) entered into force in August 2012.  EMIR requires CCPs and TRs to be authorized.

However, many of the provisions of the regulation needed further technical standards to be written in order to come into force.  The relevant technical standards were written and adopted in February 2013.  Six different technical standards were adopted as supplemental regulations and are more formally referred to as the Commission Delegated Regulations. They entered into force in March 2013.

EMIR lays down clearing and bilateral risk-management requirements for OTC derivative contracts, reporting requirements for derivative contracts and uniform requirements for the performance of activities of CCPs and TRs.  The regulation applies to CCPs and their clearing members, to financial counterparties and TRs.  EMIR also applies to non-financial counterparties and trading venues where so provided.

Under EMIR, all CCPs were required to apply for authorization by September 2013. It is expected that most CCPs will complete the authorization process in the first half of 2014. At that stage, EMIR itself and the applicable technical standards will apply to CCPs in full.

The Regulation is directly enforceable in each EU Member State, although CCPs remain primarily regulated by their own national competent authority.  EuroCCP is authorized under EMIR by De Nederlandsche Bank (DNB, the Dutch Central Bank).