Regulation on OTC derivatives, central counterparties and trade repositories

Following some uncertainty in early February 2013 in respect of whether the European Parliament would object to certain EMIR regulatory technical standards, it finally accepted the six draft standards and they entered into force on 15 March 2013.

The six RTS relate to: (i) Trade repositories (including the minimum details of the data to be reported to trade repositories and the data to be published and made available by trade repositories); (ii) Capital and other requirements for central counterparties (CCPs); (iii) Risk mitigation techniques for OTC derivatives contracts not cleared by a CCP (other than collateral requirements - as to which see further below), indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue and non-financial counterparties (NFCs).

Upon entry into force, some of the RTS apply immediately (for example, those relating to timely confirmation - pursuant to which financial counterparties (FCs) and NFCs must confirm OTC derivative transactions within certain prescribed time frames and FCs must have procedures in place to report on a monthly basis the number of OTC derivative transactions that have been outstanding for more than five business days - and mark-to-market valuation - pursuant to which FCs and NFC+s are required to value outstanding OTC derivative contracts on a daily basis). However, it is worth noting that the European Commission EMIR FAQs published on 8 February 2013 recognise that it may not be possible to effect timely confirmations immediately and so Member States will be given some flexibility in respect of how this RTS will be applied - at least initially…

If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

  • Panel reviews

    Panel reviews 2014: The chosen ones

    Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all

  • training

    Accutrainee: Revolution postponed

    At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.

View more analysis from The Lawyer

Overview

One Bishops Square
London
E1 6AD
UK
http://www.allenovery.com

Turnover (£m): 1,234.30
No. of lawyers: 2,194 (UK 200)
Jurisdiction: UK
No. of offices: 11
No. of qualified lawyers: 273 (International 50)