EMIR: an overview of the new framework

Purpose – The purpose of this paper is to explain the European Market Infrastructure Regulation, known as EMIR, adopted on July 4, 2012 as the Regulation on OTC Derivatives, Central Counterparties and Trade Repositories. Design/methodology/approach – The paper explains EMIR's clearing and reporting requirements, who is within the scope of those requirements, who is a financial and non‐financial counterparty, the clearing thresholds, the clearing and reporting obligations, when those obligations will begin, the risk mitigation obligations, and a range of potential questions anyone trading in OTC derivatives should consider. Findings – EMIR requires that all standardized OTC derivatives contracts be cleared through a central counterparty and reported to a trade repository. Originality/value – The paper provides practical guidance by experienced financial services lawyers.