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.¬†

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