EMIR: The Ongoing Search For A Compliant And Efficient Framework

Having entered into force in August 2012, the regulation known as EMIR1 has now turned five years old. Despite its age, EMIR is no less burdensome on participants in derivative markets than it ever was—in fact, just the opposite: we have spotted increased market activity with regards to EMIR. Consider the following symptoms:

1. The regulation and its requirements is in a constant flow.

   Changes in EMIR reporting: the European Commission has made significant changes in the scope and format of information transmitted to trade repositories. New margin requirements went live this year (with more to go live in 2018). The Commission has sent a proposal for an enhanced regulation to the Parliament and the Council, called "EMIR 2". For more details, see our articles on the revised reporting standards, bilateral margin rules, and EMIR 2.

2. The Luxembourg regulator has increased its attention on EMIR compliance.

   In recent weeks, the CSSF—the main local regulator in charge of EMIR—has sent individualised letters to NFCs who traded derivatives in 2017 to remind them of their responsibilities with regards to EMIR. In addition, the CSSF has asked banks to report on their level of EMIR compliance by December 2017 via a questionnaire. How KPMG can help

   Companies trading...