On 27 September 2012, ESMA published its final report (ESMA/2012/600) on draft technical standards under EMIR (the Regulation on OTC derivatives, central counterparties and trade repositories (Regulation 648/2012)). The technical standards set out the specific details of how EMIR's requirements are to be implemented in respect of over-the-counter (OTC) derivatives, central counterparties (CCP) and trade repositories. The amendments to the technical standards for OTC derivatives cover:
- Indirect clearing arrangements.
- Non-financial counterparties.
- Risk mitigation techniques for contracts not cleared by a central counterparty.
Of particular note, as regards EMIR, is that information on each derivative contract traded by a financial or non-financial firm will need to be reported to trade repositories within one day of the execution of the contract, that counterparties must clear standardised OTC derivative contracts through an authorised CCP and that certain procedures are followed where OTC derivative contracts are not cleared by a CCP.