EMIR 3 (EU Regulation 2024/2987) introduces substantial reforms to the regulatory framework for OTC derivatives, focusing strongly on clearing and risk mitigation. While much of the discussion has centered on the requirement for EEA counterparties to open and actively use accounts with EEA Clearing Houses, an equally important yet less highlighted development is the new approval process for initial margin models used by financial counterparties.
In our latest blog, we explore:
- The approval process for new and modified initial margin models under EMIR 3.
- How the European Banking Authority will treat and validate pro-forma models like ISDA-SIMM.
- The enhanced supervision for large investment firms with high OTC derivative exposure.
- The new exemption for exchange of collateral when trading Single Equity and Equity Index options.
- The EBA’s guidance on how NCAs should handle supervisory actions and approvals.
- Sectoral impact for CFD providers.