EMIR

ABOUT THE DOCUMENT

On 4 July 2012, EMIR (European Market Infrastructure Regulation) – Directive (EU) No. 648/2012 of the European Parliament and of the Council on OTC derivatives, central counter parties, and trade repositories entered into force.

PERSONS TO WHICH EMIR APPLIES

Financial and non-financial institutions regardless of their place of registration, either in or outside EU. EMIR also applies to OTC transactions concluded between two non-residents of the EU, if the transaction concluded significantly affects the EU market.

DUTIES OF MARKET PARTICIPANTS

  • Reporting about transactions:
    • Provision of information regarding the concluded OTC transactions involving derivative financial instruments to trade repositories. The list of trade repositories approved by the European Securities and Markets Authority (ESMA): Registered Trade Repositories
    • Information regarding transactions must be provided within one business day following the day on which the transaction has been concluded or the conditions of the transaction have been changed.
    • Information must be provided by both counter parties of the transaction; however, it is allowed for one party to authorise the other party to provide information on behalf of both parties.
    • Upon providing information to the repository, the counter parties must indicate special identification numbers – pre-LEI (Legal Entity Identifier), which the parties may receive from the authorised registrars. The current list of registrars is provided here
  • Taking measures for reducing risks
    • timely confirmation of transactions
    • procedure for settlement of disputes

More information on EMIR is available on the ESMA site.