European Markets Infrastructure Regulation (EMIR) and EMIR-Refit
Regulation EU 648/2012 on OTC derivatives, central counterparties (CCPs) and trade repositories (TR) known as the EMIR regulation came into force since August 2012. In May 2019, the European Union published a major update to EMIR, Regulation (EU) 2019/834, colloquially known as EMIR-Refit. EMIR-Refit began to gradually come into effect since June 2019. Under EMIR-Refit counterparties (e.g. Investment Firms, Banks, AIFs, UCITS, Central Securities Depositaries and other Financial and Non-Financial Counterparties) engaging in derivative transactions will need to adhere to the following obligations:
- Reporting to TRs;
- Central Clearing for certain classes of OTC derivatives where their positions exceed the clearing thresholds, and
- Application of risk mitigation techniques for non-centrally cleared OTC derivatives.
As part of our pledge to be ahead of upcoming legislations and as the foremost experts in the field, our Financial Services Advisory team on Compliance offers our clients the following services:
- Regulatory analysis of impact on your business:
- Determine the obligations that apply to you;
- Review and advice on risk mitigation techniques where applicable;
- In depth health-checks of reports submitted to TRs to ensure correctness;
- Continuous on-going assistance and advice with respect to your obligations under EMIR-Refit;
- Checking your operations to determine what changes you need to have in place in order to comply with EMIR-Refit provisions, and;
- Analysis of your entire derivatives portfolio to determine which instruments are reportable.
- Develop an action plan for compliance:
- Adapt current operating model;
- Suggest changes to reporting styles to comply with the rules;
- Suggest action plan to meet its Risk Mitigation obligations;
- Set feasible deadlines, and;
- Manage changes required by EMIR-Refit.
- Advice and implementation of available solutions:
- IT systems, and
- Through our affiliated regulatory reporting technology provider, MAP FinTech, we can assist you to automate reporting as well as report transactions/life cycle events related to derivatives to licensed TRs