EMIR

Find out more about the European Market Infrastructure Regulation on derivatives, central counterparties and trade repositories (EMIR), which imposes requirements to improve transparency and reduce the risks associated with the derivatives market.

EMIR imposes requirements on all types and sizes of entities that enter into any form of derivative contract, including those not involved in financial services. It applies indirectly to non-EU firms trading with EU firms. EMIR also establishes common organisational, conduct of business and prudential standards for central counterparties (CCPs) and trade repositories.

EMIR requires entities that enter into any form of derivative contract, including interest rate, foreign exchange, equity, credit and commodity derivatives, to:

  • report every derivative contract that they enter into to a trade repository
  • implement new risk management standards, including operational processes and margining, for all bilateral over-the-counter (OTC) derivatives, ie trades that are not cleared by a CCP
  • clear, via a CCP, those OTC derivatives subject to a mandatory clearing obligation

High-level implementation timetable (reverse order)

Date Action
1 Mar 2017 Variation margining requirements for non-centrally cleared trades will apply for all other institutions that are within scope.

4 Feb 2017 - 1 Sept 2020

Initial margining requirements for non-centrally cleared trades will apply from 4 February 2017 for the largest institutions. This will be followed by an annual phase in such that all other institutions that are within scope above a minimum threshold will be subject to initial margin from 1 September 2020.
4 Feb 2016 Variation margining requirements for non-centrally cleared trades will apply for the largest institutions.
11 Aug 2014 Financial counterparties/NFC+s are required to provide daily reports on mark-to-market valuations of positions and on collateral value.
10 Apr 2014 The technical standards on the cross-border application of EMIR came into effect. Article 2 however (which sets out which contracts have a direct, substantial and foreseeable effect within the EU) applied from 10 October 2014.
18 Mar 2014 The first CCP was authorised under EMIR.
12 Feb 2014 Details of all classes of derivative contract (both OTC and ETD) are required  be reported to recognised trade repositories.
15 Sep 2013 Risk management of non-cleared OTC derivatives through portfolio reconciliation, dispute resolution and trade compression will apply.
15 Mar 2013

All legal and contractual terms of non-centrally cleared OTC derivative contracts must be confirmed between counterparties within specified timelines.

Non-financial counterparties exceeding the clearing threshold are required to notify the FCA.

The technical standards on OTC Derivatives, Reporting to Trade Repositories and Requirements for Trade Repositories and Central Counterparties entered into force.

16 Aug 2012 EMIR entered into force, but most provisions only apply after technical standards enter into force.

Implementation dates are subject to change depending on the progress of EU implementation.

Register for email updates from the FCA

You can register to receive email updates on EMIR from us. These include:

  • information on the implementation timetable
  • alerts when new documents or further guidance are published, and 
  • further details about the process for apply for making notifications and applying for exemptions in the UK

To register to receive updates, email your name and contact details (including email address) to [email protected].

Unsubscribe at any time by emailing ‘unsubscribe’ and your name and email address to the same address. 

Latest EMIR news

See EMIR news for all updates in full.

Date Title Links
3 February 2017

Margin requirements for uncleared derivatives - video guides

The margin requirements under EMIR for over the counter (OTC) derivative contracts not cleared through a central counterparty take effect on 4 February 2017 for larger firms (those with a group average aggregate notional amount above EUR 3 trillion) and 1 March 2017 for all other firms in scope. In order to assist firms with implementation, we have produced two videos.

In the first video, we provide a more in-depth overview of the margin requirements under EMIR, giving details on implementation timing and scope and what firms need to do in order to meet the requirements.

In the second video, we provide an overview of the intragroup exemptions that are available from the margin requirements and the application process firms are expected to follow in order to benefit from this exemption.

Video: Margin requirements for uncleared OTC derivative contracts

Video: Intragroup exemptions from the margin requirements under EMIR

19 September 2016

Bank of England authorises ICE Clear Europe Limited as a Central Counterparty under EMIR

On 19 September 2016, the Bank of England updated its list of UK authorised central counterparties (CCPs) to include the authorisation of ICE Clear Europe Limited. ESMA also added ICE Clear Europe Ltd to its list of authorised CCPs under the European Markets Infrastructure Regulation (EMIR).

EMIR requires CCPs to be authorised by a college of supervisors in order to offer CCP services in the European Union. Once a CCP has been authorised or recognised within the EU, EU firms can use these CCPs to fulfil their clearing obligations (the public register for the clearing obligations under EMIR is available on ESMA's website).

Bank of England’s list of UK authorised central counterparties

ESMA’s list of authorised CCPs under EMIR (PDF)

 

9 September 2016

ESAs reject proposed amendments from the European Commission to technical standards on non-centrally cleared OTC derivatives

On 9 September 2016, the European Supervisory Authorities (EBA, EIOPA and ESMA ("ESAs")), published an Opinion addressed to the European Commission (EC). The Opinion expresses the views of the ESAs on the EC's proposed amendments to the final draft Regulatory Technical Standards ("RTS") on risk mitigation techniques for OTC derivatives not cleared by a central counterparty. The draft RTS were submitted by the ESAs to the EC in March.

In particular, following the Commission's communication on 28 July 2016, expressing its intention to endorse the ESAs' final draft RTS with amendments, the ESAs' Opinion rejects some of the proposed amendments.

The Opinion and accompanying press release can be found on the ESAs' website.

ESAs' website