General Over-the-Counter Derivatives: Clearing and Procedures for Reporting
CCPs: Central Counterparties are financial market infrastructures that interpose themselves between counterparties’ trading contracts in one or more financial markets, becoming ‘the buyer to every seller and the seller to every buyer’. The role of CCPs is to provide greater certainty that the obligations of those contracts will be fulfilled if the other party defaults.
Clearing: The process of establishing positions, including the calculation of net obligations, and ensuring that financial instruments, cash, or both, are available to secure the exposures arising from those positions.
Clearing member: An undertaking which participates in a CCP and which is responsible for discharging the financial obligations arising from that participation.
Client: An undertaking with a contractual relationship with a clearing member of a CCP which enables that undertaking to clear its transactions with that CCP.
EMIR: Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories. The ‘EU EMIR’ refers to the EU version of the Regulation. ‘EMIR’ is the Regulation as it has effect in the UK after IP completion day (see EU EMIR and EMIR ).
EMIR 2.2: Regulation (EU) 2019/2099 of the European Parliament and of the Council of 23 October 2019 amending Regulation (EU) No 648/2012 as regards the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs. The ‘EU EMIR 2.2’ refers to the EU version of the Regulation. ‘EMIR 2.2’ is the Regulation as it has effect in the UK after IP completion day (see EU EMIR 2.2 and EMIR 2.2 ).
EMIR REFIT: Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories. The ‘EU EMIR REFIT’ refers to the EU version of the Regulation. ‘EMIR REFIT’ is the Regulation as it has effect in the UK after IP completion day (see EU EMIR REFIT and EMIR REFIT ).
FRANDT: Fair, Reasonable, Non-Discriminatory and Transparent.
TR: Trade Repositories are financial market infrastructures operated by legal entities which centrally collect and maintain data about a variety of financial transactions, including trades in derivatives, securities lending and borrowing, repurchase agreements, and foreign exchange transactions. They ensure transaction transparency for both market participants and regulators.