Regulation of OTC derivatives: Amending the European Market Infrastructure Regulation (EMIR)

08-06-2018

The European Market Infrastructure Regulation (EMIR – Regulation (EU) No 648/2012), adopted in 2012, forms part of the European regulatory response to the financial crisis, and specifically addresses the problems observed in the functioning of the ‘over-the-counter’ (OTC) derivatives market during the 2007-2008 financial crisis. In the last three years, the Commission, with the help of reports from the European Systemic Risk Board (ESRB), the European Central Bank (ECB) and the European Securities Markets Authority (ESMA), carried out an extensive assessment of EMIR. In May 2017, it proposed a regulation amending and simplifying Regulation (EU) No 648/2012 in the context of its Regulatory Fitness and Performance (REFIT) programme, to address disproportionate compliance costs, transparency issues and insufficient access to clearing for certain counterparties. The Council published its mandate for negotiations with the EP on 11 December 2017. On 16 May 2018, the ECON committee of the EP adopted its report which is due to be debated during the June plenary. Second edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

The European Market Infrastructure Regulation (EMIR – Regulation (EU) No 648/2012), adopted in 2012, forms part of the European regulatory response to the financial crisis, and specifically addresses the problems observed in the functioning of the ‘over-the-counter’ (OTC) derivatives market during the 2007-2008 financial crisis. In the last three years, the Commission, with the help of reports from the European Systemic Risk Board (ESRB), the European Central Bank (ECB) and the European Securities Markets Authority (ESMA), carried out an extensive assessment of EMIR. In May 2017, it proposed a regulation amending and simplifying Regulation (EU) No 648/2012 in the context of its Regulatory Fitness and Performance (REFIT) programme, to address disproportionate compliance costs, transparency issues and insufficient access to clearing for certain counterparties. The Council published its mandate for negotiations with the EP on 11 December 2017. On 16 May 2018, the ECON committee of the EP adopted its report which is due to be debated during the June plenary. Second edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.