On 27 July 2012, the text of the Regulation on OTC derivatives, central counterparties and trade repositories (Regulation 648/2012) (EMIR) was published in the Official Journal of the European Union (OJ). The Regulation will enter into force 20 days after its publication in the OJ. EMIR is aimed at improving the functioning of OTC derivatives markets in the EU by reducing risks via the use of central clearing and risk mitigation techniques, increasing transparency via trade repositories (TRs) and ensuring sound and resilient central counterparties (CCPs). EMIR provides for the mandatory clearing of standardised OTC derivative contracts and all derivative contracts (not only OTC derivatives) will have to be reported to TRs which will publish aggregate positions by class of derivatives. CCPs will have to apply for authorisation within six months of standards being adopted. ESMA will be able to block the authorisation of CCPs, and CCPs from third countries will be recognised in the EU if the legal regime of the third country provides for an effective equivalent system of recognition. Work on EMIR Level 2 continues.