EMIR – Aren’t We Done Yet?

“Haven’t we finished EMIR?”

“I mean, 2012, that stuff is 3 years old right?”

And so my meaningful conversation in the pub went on, but the truth is, in terms of what’s in place and actually up and running, we’ve really only just scratched the surface and I felt compelled to explain why.

As a Consultant, your high-level analysis doesn’t get much higher than a Road Map (other than your pub analysis of course! 🙂 ) but for EMIR and European OTC derivative reform, we can go one step better and wind back the clock to the September 2009 G20 Summit in Pittsburgh, where one short statement changed the World forever for OTC derivatives:

“All standardized OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end-2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements.” Continue reading