Regulation (EU) 2019/834 amending Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories

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Series Details L 141
Publication Date 28/05/2019
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Summary:

Regulation of the European Parliament and of the Council of 20 May 2019 setting out a number of targeted modifications to the European Market Infrastructure Regulation (EMIR), in particular to simplify the rules and make them more proportionate.

Further information:

Regulation (EU) No 648/2012, the European Market Infrastructure Regulation (EMIR), was adopted in the wake of the financial crisis to address the shortcomings observed in the functioning of the over-the-counter (OTC) derivatives market. These shortcomings led to the G20 leaders to commit to far-reaching measures to increase the stability of this market, including that all standardised OTC derivatives contracts should be cleared through central counterparties, and that OTC derivatives contracts should be reported to trade repositories.

On 4 May 2017 the European Commission presented a proposal to amend Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivatives contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories.

The Council of the European Union approved its general approach regarding this draft law on 11 December, while the European Parliament adopted its own negotiating position on 12 June 2018. An informal agreement between the institutions on a compromise text was reached on 5 February 2019.

Related Link(s)
Commentary and Analysis
EPRS: Briefing, December 2017: European Market Infrastructure Regulation REFIT proposal [Initial Appraisal of a European Commission Impact Assessment] http://www.europarl.europa.eu/RegData/etudes/BRIE/2017/611001/EPRS_BRI(2017)611001_EN.pdf
EPRS: At a Glance, June 2018: Regulation of OTC derivatives in the EU http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2018)623531
EPRS: Briefing, June 2018: Regulation of OTC derivatives: Amending the European Market Infrastructure Regulation (EMIR) http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2017)603983

News
EurActiv, 04/05/2017: Commission eases rules for controversial derivatives sector http://www.euractiv.com/section/economy-jobs/news/commission-eases-rules-for-controversial-derivatives-sector/
New York Times, 04/05/2017: As ‘Brexit’ tensions rise, EU proposal targets London finance https://www.nytimes.com/2017/05/04/business/dealbook/eu-britain-brexit-derivatives.html
Politico, 04/05/2017: EU takes aim at London’s euro business http://www.politico.eu/article/eu-fires-opening-shot-to-end-londons-euro-business/
Reuters, 04/05/2017: EMIR review plans end to dual-sided swaps reporting http://www.reuters.com/article/idUSL8N1I649J
Reuters, 04/05/2017: EU plans to ease derivatives rules in bid to boost economy http://www.reuters.com/article/idUSKBN1801BF

Official
EUR-Lex: COM(2017)208: Proposal to amend Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2017:208:FIN
EUR-Lex: SWD(2017)148: Impact assessment accompanying COM(2017)208 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:148:FIN
EUR-Lex: SWD(2017)149: Executive summary of the impact assessment accompanying COM(2017)208 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2017:149:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on European Market Infrastructure Regulation (EMIR): clearing obligation, reporting requirements, risk-mitigation techniques, trade repositories http://www.europarl.europa.eu/oeil-mobile/fiche-procedure/2017/0090(COD)
European Parliament: Legislative Train: Updated Rules on OTC Derivatives and Clearing | EMIR Review http://www.europarl.europa.eu/legislative-train/theme-deeper-and-fairer-internal-market-with-a-strengthened-industrial-base-financial-services/file-emir-review-refit
European Commission: Press Release, 04/05/2017: Commission proposes simpler and more efficient derivatives rules http://europa.eu/rapid/press-release_IP-17-1150_en.htm
European Commission: Fact Sheet, 04/05/2017: Questions and Answers on the proposal to amend the European Market Infrastructure Regulation (EMIR) http://europa.eu/rapid/press-release_MEMO-17-1145_en.htm
European Commission: Press Release, 05/02/2019: Simpler EU rules for derivatives will reduce costs and regulatory burdens for market participants http://europa.eu/rapid/press-release_IP-19-848_en.htm

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