Changes To The UK EMIR Reporting Obligation

The European Market Infrastructure Regulation ("EMIR") is a UK and EU framework for over-the-counter ("OTC") derivatives, central counterparties ("CCPs") and trade repositories. It had its origins in 2009 following an assessment of the role of derivatives in the financial crisis and an aspiration to increase transparency and better manage credit and operational risks.

Adopted in 2012 and effective from 2014, certain entities that trade in OTC derivatives have been required to submit a record of these transactions to a trade repository (the "Reporting Obligation") and implement risk management measures such as centralised clearing and reconciliation mechanisms. The scoping provided by the legislation is broad and can draw in entities across the globe, including counterparties not authorised by European national competent authorities or which are not connected to the financial services industry.