EMIR Refit: Are You Fit For The Future?

The European Market Infrastructure Regulation¹ (EMIR) came into force on 16 August 2012 and was the European response to the G20 commitment to implement measures to increase transparency and reduce both counterparty credit risk and operational risk in the derivatives market. Because it is in the form of a regulation, EMIR is directly applicable in all EU member states and does not require any further national implementation. Over the past six and a half years, the provisions of EMIR have been coming into effect on a rolling basis; "Level 2" delegated regulations adopted by the European Commission (EC) have provided much of the substantive detail required. Although EMIR is not yet fully effective, the majority of the Level 2 legislation has now been passed into law and provides timeframes for the rest of the phasing in.