EMIR
EMIRAlso called european Market Infrastructure Regulation, regulation (EU) No 648/2012
EMIR, the European Market Infrastructure Regulation, is the EU law governing derivatives. It requires both counterparties to report every derivative contract to a registered trade repository, makes certain OTC derivatives subject to central clearing, and sets risk mitigation rules such as margin exchange for uncleared trades. It also regulates central counterparties and trade repositories.
How it works
Financial and large non-financial counterparties report new, modified and terminated derivatives to a trade repository by the next working day. Each trade carries a unique transaction identifier shared by both sides, and the repository reconciles the two reports. Since EMIR Refit in April 2024, reports use ISO 20022 XML with more fields. Firms above clearing thresholds clear in-scope contracts through authorised CCPs.
Regulators use EMIR data to see the build-up of risk in derivatives markets, which was hidden before 2008. Reporting errors, unpaired trades and late reports are common supervisory findings. EMIR 3, in force since 24 December 2024, adds an active account requirement at EU CCPs. The UK runs its own onshored version, with UK EMIR Refit reporting live since 30 September 2024.
The rules
Sets derivatives reporting, central clearing and risk mitigation obligations and regulates CCPs and trade repositories.
EU counterparties to derivatives, CCPs and trade repositoriesIntroduced revised reporting fields, ISO 20022 XML format and stricter data quality requirements for trade reports.
EU derivatives counterpartiesIntroduces the active account requirement at EU CCPs and changes clearing thresholds and CCP supervision.
EU financial and non-financial counterparties above clearing thresholdsApplied revised reporting fields and ISO 20022 XML format to UK EMIR trade reports.
UK derivatives counterpartiesCommon questions
Who has to report under EMIR?
All EU counterparties to derivative contracts are in scope. Under EMIR Refit, financial counterparties report on behalf of small non-financial counterparties for OTC trades. Fund managers report for the funds they manage.
What is a UTI?
A unique transaction identifier is a code that both counterparties attach to their reports of the same derivative. Trade repositories use it to pair and reconcile the two sides. The counterparties agree which side generates it.
How does UK EMIR differ from EU EMIR?
UK EMIR is the version retained in UK law after Brexit and supervised by the FCA and Bank of England. The rules started out the same but now diverge, including separate Refit reporting standards and no EMIR 3 active account requirement.
