Reduce Counterparty/Operational Risk in OTC Derivatives Market

The European Market Infrastructure Regulation (EMIR) was created as a result of the 2007-2008 financial crisis to mitigate the systemic risk of the OTC  (Over-The-Counter) derivatives market by enhancing transparency and reducing counterparty risk.

The key objectives of EMIR are as follows:

  • Trade all standardized derivatives instruments on exchanges or electronic platforms
  • Clear all standardized OTC derivatives through Central Counterparties (CCPs)
  • Report all derivatives contracts (OTC and Exchange Traded Derivatives) to trade repositories
  • Subject non-centrally cleared derivatives to higher capital requirements and risk mitigation techniques
  • Establish an appropriate risk management framework for non-centrally cleared derivatives

 

Financial and non-financial counterparties are required to report the following OTC trade data to trade repositories: collateral details, trade confirmation details, asset class specific details, identification of ultimate counterparties, unique trade identifiers and Legal Entity Identifiers (LEIs).

For EMIR reporting, the data you provide must be clean, accurate and up-to-date. More importantly, you must be able to identify which entities are covered by EMIR.

Compliance Made Easy

Opus can add LEIs, FATCA GIINs (Foreign Account Tax Compliance Act Global Intermediary Identification Number), CIK (Central Index Key), credit ratings and many other identifiers to your counterparty information. Opus concordance service matches and cross-references the rated issuers, credit default metrics and company attribute information to a single common identifier. This allows you to quickly and accurately generate the appropriate reports to satisfy your reporting obligations. Learn more