EC announces public consultation on derivatives/EMIR
by Kylene Casanova
The European Commission (EC) has published a questionnaire as part of its review of the European Market Infrastructure Regulation (EMIR), which was a key piece of legislation passed following the financial crisis. It was intended to stabilise European financial markets and make them safer by regulating derivatives.
EMIR introduced trade reporting, central clearing and risk mitigation requirements for derivative counterparties. It also established harmonised business requirements for trade repositories and central counterparties operating in the EU. The regulation, directly applicable and enforceable throughout the EU, is designed to increase financial stability by preventing a scenario where the collapse of one financial firm can cause the collapse of other financial firms.
Under Article 85(1) of the regulation on OTC Derivatives, Central Counterparties and Trade Repositories, the EC is obliged to review and prepare a general report on the regulation.
The review will enable the EC to understand how the regulation has affected market participants and will rely largely on feedback received from the public consultation.
All interested parties are encouraged to complete the questionnaire, which is available on the EC's website.
As part of the review, a public hearing will take place on 29 May 2015 and the public consultation will close on 13 August 2013.
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