EMIR is an EU directive aimed at creating security and transparency in the trading of derivatives. The rules impose obligations on companies engaging in such trading. These obligations relate to reporting, provision of security (through providing margin), and certain risk management practices.
We comply with EMIR and are incorporating compliance into myvertis. We also help our clients comply with obligations under EMIR.
EMIR categorises companies into two groups:
- Financial counterparties – these are financial institutions such as banks, insurance companies and so forth
- Non-financial counterparties – any another company
The category of non-financial counterparty is divided into large ones (“NFC+) and smaller ones (“NFC-“). There are stricter requirements over larger ones. The criteria distinguishing between NFC+ and NFC- are the volumes of derivative trade done. The thresholds are measured in billions of euro, so the vast majority of installations in the EU ETS will be classified as NFC-.
EMIR sets out the following requirements for companies engaged in trading derivatives:
- Derivate trades must be reported to a Trade Repository within a day of being executed
- OTC derivative trades for financial institutions and large non-financials must be cleared by a central clearing party
- OTC derivative trades for financial institutions and large non-financials must post margin as collateral for the positions they enter into
- All counterparties must apply certain risk management techniques including: timely confirmation of trades, regular reconciliation of balances, compression of portfolios, introducing procedures for dispute resolution and (except for small non-financial counterparties) daily valuation of positions.
We build EMIR compliance into our myvertis system, meaning that our clients who are registered with myvertis will find EMIR compliance particularly easy. We can perform reporting for you. We issue automated trade confirmations and we reconcile balances regularly in any case. These are part of every day good business practice any way.
Name and LEI number
All parties covered by EMIR have an official name and LEI number. Vertis’ details are as follows:
Official Entity Name: VERTIS KORNYEZETVEDELMI PENZUGYI ZARTKORUEN MUKODO RESZVENYTARSASAG
If you need help getting an LEI number sorted out, please contact us.
Download this letter to see the form of our confirmation of compliance with EMIR. [PDF, 50 kB]
We are contracted with DTCC, the UK based trade repository. If you trade in products covered by EMIR you will need to register with a trade repository. If you would like help in this, please contact us.
We are happy to report trades on your behalf to save you administrative time and cost. This is referred to in EMIR documentation as “delegated reporting”, where you would delegate to us certain reporting responsibilities. Please call your corporate trader to discuss this further or you can express your interest in delegating your reporting obligation to us by filling in our EMIR Delegated Reporting Preferences form here.