European Market Infrastructure Regulation (EMIR)
The European Market Infrastructure Regulation (EMIR) is a European regulation regarding derivatives, central counterparties and trade repositories. EMIR is set up following the commitment announced by the Group of 20 (G20) in 2009 to increase regulation on non-centrally cleared derivatives with the objective to increase the stability (mitigation of systemic risk and transparency) within global derivative markets. This regulation entered into force on 16 August 2012 and its obligations gradually took effect from 2013 onwards.
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Please note that this publication only serves to provide general back-ground information, is not necessarily complete or correct, and does not contain individual, legal or other advice. EMIR might impact your (OTC) derivatives business and your relationship with us, so we urge you to inform yourself on this subject and obtain the necessary advice.
Client Classification and Obligations
EMIR recognizes a number of counterparty classifications. The effects, obligations and responsibilities to comply with EMIR vary according to the classification of an entity.
What are the counterparty classifications and obligations under EMIR?
EMIR recognizes the following counterparty classifications:
|Asset Class||Threshold in gross notional value|
|Credit derivatives||€1 billion|
|Equity derivatives||€1 billion|
|Interest rate derivatives||€3 billion|
|Foreign exchange derivatives||€3 billion|
|Commodity and other derivatives||€4 billion|
Table 1. Clearing thresholds
Exempted Entities are exempted from clearing and reporting obligations. These entities include members of the European System of Central Banks (ESCB) and other Member States’ bodies performing similar function, EU public bodies charged with the management of public debt, The Bank for International Settlements, and certain Third Country Central banks/ public bodies charged with the management of public debt (subject to the Commission including these entities to the exclusion).
Partially Exempted Entities are subject to reporting obligation. These entities include multilateral development banks, public sector entities if owned by central governments and that have explicit guarantee arrangements provided by central governments, the European Financial Stability Facility and the European Stability Mechanism.
Coöperatieve Rabobank U.A (formerly known as Coöperatieve Raiffeisen-Boerenleenbank B.A.)
|Emir Clearing Category||Category 1|
|Legal Entity Identifier (LEI)||DG3RU1DBUFHT4ZF9WN62|
|Rabobank is able to clear OTC transactions with the following EU authorized CCP’s||Interest rate swaps:|
The review of EMIR, also known as EMIR REFIT, contains multiple targeted reforms to further improve the functioning of the derivatives market in the EU. These reforms provide simpler and more proportionate rules for over-the-counter (OTC) derivatives to reduce costs and regulatory burdens for market participants without compromising financial stability.