Meet your EMIR requirements with Clearstream
The European Market Infrastructure Regulation (EMIR) is one of the key regulations adopted in the aftermath of the financial crisis to take risk out of financial markets. Mandatory clearing and reporting as well as a stricter non-cleared margin regime that affects banks’ balance sheets results in increased costs and liquidity constraints across the market.
Clearstream offers dedicated services which help customers manage their cleared and uncleared OTC derivative trades in an efficient and secure manner in line with EMIR. These services include registration, contract administration, settlement, strategic securities lending, collateral management and portfolio reconciliation.
Once the trade has been concluded, it is registered in our trade repository REGIS-TR and Clearstream’s Global Liquidity Hub acts as the collateral agent for the margining of both cleared and uncleared derivatives.
The bilateral collateral management of variation margins for uncleared derivatives is offered by the OTC Collateral service while triparty services are offered for the initial margin segregation and management of both uncleared and cleared derivatives. For the latter, seamless clearing is ensured thanks to links with all major EMIR-approved CCPs such as our Deutsche Börse Group sister company Eurex Clearing.
EMIR impact on customers
Clearstream services in support of EMIR compliance
OTC derivative reporting: as of February 2014, all firms have had to report their OTC derivative transactions to trade repositories
The trade repository REGIS-TR which Clearstream runs jointly with Iberclear as well as our Deutsche Börse Regulatory Repoting Hub provide detailed reporting services.
Variation margin for uncleared derivatives: the mandatory exchange of variation margin for uncleared derivatives was introduced in 2017
Clearstream’s Global Liquidity Hub services for triparty (TCMS) and bilateral (OTC Collateral) collateral management provide customers with extensive margining services.
Initial margin for uncleared derivatives: the exchange of initial margin is being phased in from 2017 to 2020, depending on the size of the average aggregate notional amounts
Thanks to the triparty collateral management services under the Global Liquidity Hub, Clearstream acts as the triparty collateral agent for initial margin segregation and management.
Initial margin for cleared derivatives: mandatory clearing through an authorised clearing house (CCP) for specific IRS and CDS products is to be phased in from 2016-2018
Thanks to links with all major OTC derivative clearers such as our Deutsche Börse Group sister company Eurex Clearing, CME Clearing Europe, ICE Clear Europe and LCH.Clearnet Ltd, customers can also use the Global Liquidity Hub as the triparty collateral agent for the initial margin segregation and management of cleared derivatives under EMIR.