European Parliament adopts EMIR | Practical Law

European Parliament adopts EMIR | Practical Law

The European Parliament has published a press release announcing it has adopted the European Market Infrastructure Regulation (EMIR) (also known as the Regulation on over-the-counter (OTC) derivative transactions, central counterparties (CCPs) and trade repositories). (Free access.)

European Parliament adopts EMIR

Practical Law UK Legal Update 3-518-7265 (Approx. 3 pages)

European Parliament adopts EMIR

by PLC Financial Services
Published on 29 Mar 2012 • European Union
The European Parliament has published a press release announcing it has adopted the European Market Infrastructure Regulation (EMIR) (also known as the Regulation on over-the-counter (OTC) derivative transactions, central counterparties (CCPs) and trade repositories). (Free access.)
On 29 March 2012, the European Parliament published a press release announcing it has adopted the European Market Infrastructure Regulation (EMIR) (also known as the Regulation on over-the-counter (OTC) derivative transactions, central counterparties (CCPs) and trade repositories).
The press release highlights the following issues as areas where the Parliament had a strong influence in negotiating the text of EMIR:
  • All derivative contracts (not only OTC derivatives) will have to be reported to trade repositories, which will publish aggregate positions by class of derivatives.
  • The European Securities and Markets Authority (ESMA) will be able to block the authorisation of CCPs, and there is a binding mediation procedure for disputes between national regulators about CCP authorisation.
  • A "light touch" clearing obligation applies to pension schemes.
  • CCPs from third countries will be recognised in the EU only if the legal regime of the third country provides for an effective equivalent system of recognition.
  • The European Commission will evaluate the implementation of EMIR by presenting a report to the Parliament and the Council of the EU within three years of EMIR coming into force.
The text of EMIR, as adopted by Parliament, has been published, together with a set of frequently asked questions (FAQs). The FAQs indicate that the European Supervisory Authorities (ESAs) will submit technical standards to the Commission by 30 September 2012. The Commission is due to adopt the standards by the end of 2012. CCPs will have to apply for authorisation within six months of the standards being adopted.
EMIR was provisionally agreed by the Parliament, Commission and Council of the EU in February 2012 (see Legal update, Trialogue reach agreement on EMIR). For an overview of EMIR, see Practice note, Hot topics: European Market Infrastructure Regulation.
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