EMIR (European Markets Infrastructure Regulation) mandates financial institutions reporting of all derivatives contracts such OTC derivatives and exchange traded derivatives (ETDs) to Trade Repositories (“TRs”).

Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories entered in force on 16 August 2012.

The most important aim of EMIR is to increase the transparency of the over the counter (OTC) derivatives market and exchange traded derivatives, so that the EU with the help of European Securities and Markets Authority (ESMA) to have a clear view about the turnover, participants and any possible market manipulation. Another objective is to reduce the number of the counterparties involved and reduce the operational risk for market participants.

Trade Repositories collect centrally and maintain the records of all derivative contracts traded by the market participants with the aim to increase transparency of derivative markets and financial stability.

All entities classified below have to report under EMIR:

• Financial Counterparties (“FCs”) – includes Markets in Financial Instruments Directive (“MiFID”) firms (eg. EU broker-dealers), banks, pension funds, UCITS funds, alternative investment funds whose manager is authorized under the Alternative Investment Fund Managers Directive (“AIFMD”)
• Non-Financial Counterparties (“NFCs”) – entities established in the EU which are not Financial Counterparties, eg. non-UCITS fund managers where the manager is not yet authorized under AIFMD
• Third Country Entities (“TCEs”) – entities established outside the EU which would be FCs or NFCs if they were established in the EU.