How Emir compares to Title VII

Author: | Published: 31 May 2012

On March 29 2012 the European Parliament adopted a final version of the European Market Infrastructure Regulation (Emir). Like Title VII of the Dodd-Frank Act (Title VII) enacted in July 2010, Emir represents a monumental shift in the regulation of the over-the-counter (OTC) derivatives market. At their cores, Title VII and Emir implement commitments made by G20 leaders in 2009 to require centralised clearing and execution of standardised OTC derivatives by the end of 2012.

Although Title VII and Emir share some common objectives, they are not identical. Given the cross-border nature of the OTC markets, this lack of convergence may lead to conflicting requirements and divergent outcomes, making it essential to know the differences between the emerging regimes.

Who are the regulators?
The European Securities Market Authority (Esma) will write technical standards to implement Emir, which will be key in defining the precise scope of clearing requirements. Esma's other...