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On 10th October 2011, the proposal for a European Regulation on "over-the-counter (OTC) derivative transactions, central counterparties and trade repositories", also known as the European Market Infrastructure Regulation (EMIR), entered the final phase of the European legislative process. Despite the political and technical issues still under discussion, the key principles laid down in the proposal are sufficiently advanced to give a brief overview of the challenges that market participants will have to address before EMIR comes into force by the end of 2012.
The 2008 financial crisis highlighted the lack of transparency surrounding the trading of OTC derivative products. Traded on a bilateral basis outside a regulated market (hence, the expression "over-the...
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