European Market Infrastructure Regulation (EMIR)
Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012
(EMIR) on OTC derivatives, central counterparties (CCPs) and trade repositories entered into
force on 16 August 2012. The German EMIR Implementation Act (EMIR-
Ausführungsgesetz) entered into force on 16 February 2013 and brings the German legal
framework in line with the EMIR.
The main obligations arising from EMIR are: central clearing for certain classes of OTC
derivatives; application of risk mitigation techniques for non-centrally cleared OTC
derivatives; reporting to trade repositories on derivatives; application of organisational,
conduct of business and prudential requirements for CCPs; application of requirements for
trade repositories, including the duty to make certain data available to the public and the
Technical standards issued by the European Securities and Markets Authority (ESMA) and
by the EBA, or joint technical, standards issued by all European Supervisory Authorities
clarify the regulation in greater detail – a precondition for its application to a large extent.
As regards the risk mitigation techniques for non-centrally cleared OTC derivatives, the
relevant draft technical standards relating to the exchange of collateral and adequate capital
are in the process of being developed.
These developments are under close observation and legislation will be adapted as and when
a final text is agreed upon.