Derivatives

Background

One of the earliest conclusions that EU and global policymakers reached in the light of the financial crisis was that significant reform of the multi-trillion dollar derivatives market was essential to improve financial stability. In particular they were keen to ensure greater transparency – particularly towards supervisors   and a significant increase in the use of central clearing.

On 15 September 2010, the European Commission proposed regulation on OTC (Over-the-Counter) derivatives, central counterparties and trade repositories. EMIR was adopted on 4 July 2012 and entered into force on 16 August 2012.

On 4 May 2017, the European Commission published a proposal to revise the EMIR framework. The Commission's objective is to adapt the existing rules to make them more proportionate to smaller financial counterparties. The proposal is currently examined by the Council and the European Parliament. 

Invest Europe position

Financial institutions will be obliged to clear centrally all of their derivatives transactions, which includes Alternative Investment Funds, but not special purpose vehicles (SPVs). To the extent that private equity funds are undertaking derivatives business they have to comply with other EMIR’s provisions, such as margining requirements.

Publications

EMIR Review >
May 2017, European Commission

European Market Infrastructure Regulation >
August 2012, European Commission

All policy publications >