Brexit: understanding the transition period

On 31 January 2020, following the formal adoption of the withdrawal agreement, the UK officially left the European Union. Now begins the transition period outlined in the Brexit deal, which provides details on how the UK’s exit will unfold. For example, it states that no UK representative can participate in any EU institution, agency or body. It further declar […]

CSSF declares (renewed) interest in EMIR compliance

On 13 July 2018, the CSSF published a press release stressing its attention on the accurate reporting of derivative transactions. This is relevant to all parties within scope of the European Market Infrastructure Regulation (EMIR), of which the CSSF is the supervisory authority. The communication follows up questionnaires sent to banks in winter 2017 and letters […]

EMIR: levelling margin requirements for foreign exchange forwards

Effective since August 2012, the European Market Infrastructure Regulation (EMIR) and its various technical standards, notably Commission Delegated Regulation (EU) 2016/2251 regarding collateral requirements, have led to some challenges for European entities participating in the derivatives market. One of these challenges, however, will likely soon be attenuated […]

EMIR: the ongoing search for a compliant and efficient framework

Having entered into force in August 2012, the regulation known as EMIR[1] has now turned five years old. Despite its age, EMIR is no less burdensome on participants in derivative markets than it ever was—in fact, just the opposite: we have spotted increased market activity with regards to EMIR. Consider the following symptoms: 1. The regulation and its requ […]

What might a future EMIR sanction regime look like?

One of the objectives of EMIR (the European Market Infrastructure Regulation) is to lower the risk of contagion in the financial system, and in doing so promote an efficient and transparent derivatives market. It’s doing this by

EMIR blog – regulatory update

12 August 2014 – Daily derivative trade reporting of valuation and collateral exposure becomes effective  The second stage of the reporting obligation came into effect on 12 August 2014, just 6 months after the first reporting stage went live on 12 February 2014. All financial counterparties must report their trade valuation and all posted collateral on a […]