The Council adopted new rules on clearing services that revise the European market infrastructure regulation and directive (EMIR). The new rules aim to make the EU clearing landscape more attractive and resilient, to support the EU’s open strategic autonomy and to preserve the EU’s financial stability.

The European Market Infrastructure Regulation (EMIR) lays down rules on over-the-counter (OTC) derivatives, central counterparties (CCPs) and trade repositories.

The new rules improve EU clearing services by streamlining and shortening procedures, improving consistency between rules and strengthening CCP supervision. In particular, the new rules will contribute to reducing excessive reliance on systemic CCPs in non-EU countries, by requiring all relevant market participants to hold active accounts at EU CCPs and clear a representative portion of certain systemic derivative contracts within the single market.

Next steps

The revised EMIR regulation and directive will be published in the EU’s Official Journal before entering into force 20 days later.

Background

Derivatives play an important role in the economy, but they also bring certain risks. This was demonstrated during the 2008 financial crisis, that brought to light the weaknesses in the OTC derivatives markets.

To address the situation, the EU adopted the European market infrastructure regulation (EMIR) in 2012. The aim was to increase transparency in the OTC derivatives markets, mitigate credit risk and reduce operational risk.

On 7 December 2022, the Commission presented a proposal to review European market infrastructure regulation and directive in order to deepen the EU’s capital markets union, improve the existing rules and make the EU’s clearing landscape more attractive.

Adoption by the Council follows an agreement reached with the European Parliament at first reading under the ordinary legislative procedure.

Source: European Council