European regulation of OTC derivatives: Implications for non-financial companies – ACT briefing note (Updated May 2014)
The European Markets and Infrastructure Regulation (EMIR) is already law in Europe and the start dates for its requirements are being phased in over 2013 and 2014.
Any company in Europe that is undertaking derivative transactions will be affected and be subject, for example, to an obligation to report its transactions to a central “trade repository”. In a manner of speaking all companies will find themselves, perhaps for the first time, brought within the ambit of their local financial regulator.
The ACT has revised and republished its briefing note to help non-financial companies understand the specific implications for them. In particular all derivatives outstanding on 16 August 2012 and executed since then will eventually have to be reported so the need for good record keeping procedures and data capture is already upon us.
ACT webinars on derivative regulation and reporting are available here
- EMIR treatment of FX forwards – ACT response
- ESMA, 21 May 2014: Q&As on OTC regulation implementation
- Frequently Asked Questions for non financial counterparties
- ISDA EMIR related documents and guidance
- Unique Trade Identifier (UTI) resources
- Derivatives - reconciliation arrangement needed by 15 Sep 2013
- legislative source documents including FCA guidance on the status of FX forwards
- Adopted Regulatory Technical Standards on indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue, non-financial counterparties, risk mitigation techniques for OTC derivatives contracts not cleared by a CCP
- Adopted implementing technical standards with regard to the format and frequency of trade reports to trade repositories
- European Commission: EMIR Frequently asked questions
- FCA: European Market Infrastructure Regulation (EMIR) – what you need to know
- FSA: presentation on New EU Rules on Derivatives Trading
- ESMA, Dec 2012: What does EMIR mean for non-financial companies?
- Slaughter and May, Dec 2012: The impact of EU OTC derivatives regulation on non-financial counterparties