EU national competent authorities and the European Securities and Markets Authority have published an amended set of European Market Infrastructure Regulation (EMIR) Q&As. The purpose of the document is to promote common supervisory approaches and practices in the application of EMIR.The Q&As cover questions in regard to over-the-counter (OTC) Derivatives, central counterparties (CCPs) and trade repositories. There are new questions in regard to:
- Funds and counterparties;
- Principal-to-principal model;
- Definition of OTC derivatives;
- Calculation of the clearing threshold;
- Timely confirmation;
- Intragroup transactions;
- Hedging definition;
- Risk mitigation techniques for OTC derivative contracts not cleared by a CCP;
- Status of entities not established in the European Union;
- Portfolio reconciliation;
- Dispute resolution;
- Deposit of financial instruments;
- Segregation and portability;
- Default fund;
- Organizational requirements;
- Allocation of additional resources;
- Classification of financial instruments; and
- Reporting of collateral and valuation.