Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories

The EMIR Regulation, which entered into force on 16 August 2012, is designed to improve the stability of the over-the-counter (OTC) derivative markets throughout the EU. The Regulation requires standard derivative contracts to be cleared through central counterparties (CCPs) and establishes stringent organisational, business conduct and prudential requirements for these CCPs. It has also introduced an obligation to report derivative contracts to trade repositories. The Regulation, directly applicable and enforceable throughout the EU, will considerably increase financial stability and safety by preventing the situation where a collapse of one financial firm can cause the collapse of other financial firms. A specific exemption in the Regulation states that ‘pension scheme arrangements’ are exempt from the clearing obligation of certain derivatives until August 2015.

The link address is: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012R0648