Loading...

LEGAL

 

EMIR Q&A

What is EMIR?

The European Market Infrastructure Regulation (EMIR), which results from Regulation No 648/2012 of the European Parliament and the Council, adopted on 4 July 2012, regulates OTC derivatives, central counterparties and trade repositories.


Its regulatory technical standards were adopted by the European Commission came into effect on March 15, 2013, including the Delegated Regulations No 148/2013, 149/2013, 150/2013, 151/2013, 152/2013 and 153/2013.

For more information on the regulations and technical standards in force in the context of EMIR, click here

Do I qualify for EMIR?

EMIR covers all EU-authorized and non-financial entities established in the EU. It also covers non-financial entities established in third countries that would be subject to mandatory compensation if they were based in the EU.


What is the scope of EMIR?

EMIR applies to financial and non-financial counterparties, i.e. companies established in the EU, in the trading and holding of positions in derivatives other than securities.


What obligations come with EMIR?

Overall, EMIR`s set of obligations includes:

Derivatives

• Obligation of centralized clearing (with central counterparty) for certain OTC derivatives

• Implementation of risk mitigation measures for non-centrally cleared OTC derivatives;

• Mandatory communication of transactions on all derivatives to trade repositories;

Central Counterparties:

• Authorization and supervision;

• Applicable requirements;

• Interoperability;

Trade Repositories:

• Registration and supervision;

• Access to information


What do I have to do to comply with EMIR?

If you are covered by EMIR, both by its nature and by its operations, you should:

– 1st Phase: obtain a pre-LEI/LEI;


How to obtain a LEI code?

It is possible to obtain a LEI through the Approved Local Operating Units (LOU), which can be found under the following link: http://www.leiroc.org/publications/gls/lou_20131003_2

We recommend that you obtain your LEI on the Irish Stock Exchange (https://www.isedirect.ie). If you have any doubts in the LEI registration, you can contact Mr. Rui Melo of the Irish Stock Exchange at 353 16174212.


Where can I get more information?

In the CMVM and Banco de Portugal clarification note on EMIR and the ESMA Frequently Asked Questions, as well as on ESMA website regarding EMIR.Website links:

CMVM clarification note

ESMA and EMIR Frequently Asked Questions


Glossary / Main Concepts

OTC Derivatives (over-the-counter): Standardized derivative contracts entered into outside regulated markets;


Central counterparties: Legal persons that interpose between counterparties in contracts negotiated in one or more financial markets, acting as buyer to all sellers and as seller to all buyers;


Transaction repositories: Legal persons that collect and retain centrally the data concerning derivatives;


Central counterparties:

It is any financial account held by, at least, one US person, even if the remaining account holders are non-US persons.


    i. Investment firms authorized under Directive 2004/39 / EC;
    ii. Credit institutions authorized under Directive 2006/48 / EC;
    iii. Insurance undertakings authorized in accordance with Directives 73/239 / EEC and 2002/83 / EC;
    iv. Reinsurance undertakings authorized under Directive 2005/68 / EC;
    v. Bodies for collective investment in transferable securities and, if necessary, their management company authorized in accordance with Directive 2009/65 / EC;
    vi. Institutions for occupational retirement provision within the meaning of Article 6 (a) of Directive 2003/41 / EC; or
    vii. Alternative investment funds managed by an entity responsible for the management authorized or registered under Directive 2011/61 / EU. 2/10;

Non-financial counterparties: Companies established in the European Union that are not central counterparties or financial counterparties;

Clearing: Clearing of positions, including the calculation of net obligations, and ensuring that financial instruments, cash, or both, are available to secure the exposures arising from those positions;

Clearing threshold: value of positions in OTC derivatives that do not reduce risks directly related to commercial activity or to treasury management under which non-financial counterparties are subject to the clearing obligation of a central counterparty and to the implementation of risk mitigation techniques for OTC derivatives not subject to centralized clearing.