Regulation (EU) 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories (EMIR), entered into force on 16 August 2012.
This Regulation was amended by Regulation (EU) 2019/834 of the European Parliament and of the Council, of 20 May 2019, (EMIR-Refit) which reviewed EMIR, as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivatives contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories.
EMIR and its amendment by the EMIR-Refit Regulation establish a series of obligations for all investors who trade derivatives contracts, whether they are financial or non-financial institutions, although the intensity of these obligations is proportionate to the trading level and the use being made of derivatives.
Likewise, EMIR contains a series of exceptions for certain transactions, such as the hedging of own risks when managing a business, contracts concluded between companies belonging to the same group, etc. All stakeholders should review whether they are subject to any of the situations of exemption, and in such case, they should carry out the relevant formalities.
The main obligations under EMIR are:
For this calculation, the non-financial counterparty shall include all OTC derivatives contracts executed by it or by entities belonging to its group which are not used to mitigate business risk or treasury finance activities.
DISCLAMER: The aim of this text is to provide information to the public in general on different aspects related to EMIR. Given its informative nature it cannot constitute a ground for subsequent legal interpretations, the prevailing regulations being the only ones applicable for these purposes.