Implementing EMIR's Variation Margin Obligations For Uncleared Derivatives

Introduction

As the clock ticks down towards the 1st March 2017 deadline for implementing the EMIR variation margin exchange requirements, we recap on the main requirements.

EMIR's variation margin obligations are principally set out in Article 11(3) of Regulation No 648/2012 of the European Parliament and of the Council ("EMIR") and the Commission Delegated Regulation (EU) 2016/2251 (the "Margin Regulatory Technical Standards").

For background information on EMIR, please refer to the previous briefings issued by Dillon Eustace entitled "EMIR - Key Points & Dates Applicable to Financial Counterparties" and "EMIR Update & Next Steps"

Do these requirements apply to me?

The requirements apply to certain OTC derivative contracts that are not subject to the central clearing obligation under EMIR, that are entered into by two financial counterparties or by two systemically significant non-financial counterparties or by one of each. To assess whether the rules