What is an FC under EMIR?
EMIR introduces two sets of counterparties: Financial Counterparties (FC) include banks, investment managers, insurance companies or brokers. Non-Financial Counterparties (NFC) include all entities that are not Financial Counterparties.
What trades are reportable under EMIR?
EMIR requires reporting of the transaction details for both types of derivatives trades – exchange traded derivatives (ETD) and OTC derivatives.
What does EMIR apply to?
EMIR applies to all derivatives identified in Annex 1 Sections C (4) to (10) of The Markets in Financial Instruments Directive (MiFID). The main obligations apply to transactions in over-the-counter (OTC) derivatives but some, for example the reporting obligation, apply to both OTC and exchange-traded derivatives.
What is EMIR refit?
EMIR REFIT Summary The European Commission’s regulatory fitness and performance programme (REFIT), launched in 2012, is aimed at simplifying EU legislation and reducing any unnecessary regulatory burdens for citizens and businesses.
What are the EMIR classifications?
Market participants subject to EMIR and their clients are classified into these categories:
- Financial Counterparties trading derivatives above the relevant clearing thresholds (“FCs”)
- Financial Counterparties trading derivatives below the relevant clearing thresholds (“Small FC” or “FC-”)
Are FX forwards in scope for EMIR?
In-scope products for Trade Reporting include: Over-The-Counter (OTC) derivative products including both cleared and uncleared. Exchange Traded Derivatives. HSBC is including Foreign Exchange (FX) physically settled forwards as in scope until further guidance is issued.
Who is exempt from EMIR reporting?
Under UK EMIR REFIT, any intragroup transaction where at least one counterparty is a non-financial counterparty (or would be qualified as a non-financial counterparty if it were established in the UK) may be exempt from the reporting obligation providing that specific circumstances are met.
What is clearing under EMIR?
EMIR includes the obligation to centrally clear certain classes of over-the-counter (OTC) derivative contracts through Central Counterparty Clearing (CCPs). For non-centrally cleared OTC derivative contracts, EMIR establishes risk mitigation techniques.
What is the EMIR clearing threshold?
What is the Clearing Threshold? The Clearing Threshold is an amount set by class of OTC derivative contracts. It is set by regulatory technical standards and will be reviewed on a regular basis following public consultation.
Is Switzerland subject to EMIR?
EMIR applies within the European Economic Area and so is not applicable in Switzerland. A similar law on market infrastructures FINFRAG is in preparation in Switzerland and is expected to come into force in 2015.
What is a financial counterparty under Emir?
‘Financial counterparty’ is defined in Article 2 (8) of EMIR and includes UCITS funds and AIFs managed by an EEA AIFMs. Any AIF managed by an AIFM authorised or managed under AIFMD is caught, no matter what the size of the AIF.
What does the UK’s Emir legislation mean for FCS?
A streamlined reporting regime, including mandatory delegation to FCs when facing an NFC, and exemption from the reporting requirements for intragroup transactions when one of the counterparties is an NFC. The Treasury have confirmed that the UK will create legislation to bring into UK law requirements under UK EMIR, including:
What is UK Emir and why does it matter?
UK EMIR also establishes common organisational, conduct of business and prudential standards for central counterparties (CCPs) and trade repositories (TRs). UK EMIR requires entities that enter into derivative contracts, including interest rate, foreign exchange, equity, credit and commodity and emission derivatives, to:
What is another word for Emir?
See more synonyms for emir on Thesaurus.com. noun. a chieftain, prince, commander, or head of state in some Islamic countries. a title of honor of the descendants of Muhammad.