EMIR Regulation (European Market Infrastructure Regulation)
EMIR aims to strengthen the European Union's regulatory framework for derivative transactions by bringing more stability, transparency and efficiency to the derivatives markets. It also aims to reduce the credit, liquidity and operational risks of counterparties linked to over-the-counter transactions in derivatives.
The EMIR Regulation, its delegated regulations and its implementing regulations firstly govern the compulsory use of central counterparties (CCP) for standardized over-the-counter derivative contracts and establish requirements in terms of risk management, including the 'collateral exchange' for non-standardized over-the-counter derivative contracts.
Furthermore, the EMIR regulation establishes an obligation to declare derivative contracts to trade repositories, in order to give a general view of the functioning of the derivatives markets, and to communicate to the competent authorities the data relating to the derivative contracts of establishments that they control.