European Markets Infrastructure Regulation (EMIR)
Following the Regulation (EU) No 648/2012 of the European Parliament and Council of 4 July 2012 on OTC derivatives, central counterparties (CCPs) and trade repositories (TRs) (EMIR), which entered into force on 16 August 2012, counterparties (e.g. Cyprus Investment Firms, Banks, and other Financial and Non-Financial Counterparties trading OTC Derivatives) engaging in OTC derivative transactions will need to adhere to the following obligations:
- Reporting to trade repositories, starting on 12 February 2014;
- Central Clearing for certain classes of OTC derivatives, 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 and IT matters, alongside our Legal Department, offers our clients the following services:
- Regulatory analysis of impact on your business:
- Classify the financial instruments you trade;
- Determine obligations that apply to you, and
- Example of reporting: start analysis of entire derivatives portfolio to determine which trades need to be reported and by when.
- Develop an action plan for compliance:
- Adapt current operating model;
- Set feasible deadlines, and
- Manage changes required by EMIR.
- Advice and implementation of available solutions:
- IT systems, and
- Third-party vendor negotiations.