What is the difference between EMIR and MiFID 2?
MiFID II and EMIR share the regulatory coverage of the OTC derivatives market. While MiFID II introduces a trade obligation for OTC derivatives as part of its market structure related measures, EMIR addresses the duty for central clearing. In this case, both regulations complement each other.
What is the difference between EMIR and MiFIR?
There are many similarities between the MiFIR transaction reporting and EMIR trade reporting requirements. However, there are distinct regulatory drivers behind each regime: MiFIR transaction reporting is primarily used to detect market abuse whilst EMIR trade reporting is used primarily to monitor for systemic risk.
What is the difference between MiFID and MiFIR?
The main difference between MiFID and MiFIR is that the directive (MiFID) sets out the goals that EU member states should strive to meet, whereas the regulation (MiFIR) imposes rules that all countries must follow. MiFID II is a legislative act that sets out goals that all countries in the EU need to achieve.
Which of the following is the regulatory body for MiFID II regulations in Europe?
After more than two years of debate, the Directive on Markets in Financial Instruments repealing Directive 2004/39/EC and the Regulation on Markets in Financial Instruments, commonly referred to as MiFID II and MiFIR, were adopted by the European Parliament and the Council of the European Union.
What MiFID 2?
MiFID II (Markets in Financial Instruments Directive) is a revision of the European Markets in Financial Instruments Directive that came into effect in 2007 and the introduction of the MiFIR regulation. MiFID II revises certain rules and regulations for investment firms and trading venues.
What is MiFID II reporting?
MiFID II Transaction Reporting requires investment firms to report complete and accurate details of their transactions to their competent authorities, no later than the close of the following working day.
What are emir guidelines?
The European Market Infrastructure Regulation (EMIR) sets out requirements for the clearing of OTC derivatives through authorised central counterparties (CCPs), collateral exchange and risk mitigation requirements for non-cleared derivatives, as well as post-trade reporting requirements for all OTC derivatives.
What are MiFID regulations?
The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union. MiFID has a defined scope that primarily focuses on stocks.
What are the MiFID 2 requirements?
The main objectives of MiFID II include the pursuit of harmonised regulation across EU financial markets, increased competition between EU financial markets, ensuring appropriate levels of investor protection, and strengthening of supervisory powers. This paper provides a summary of the key aspects of MiFID II.
Who is subject to MiFID II regulation?
MiFID II not only covers virtually all aspects of financial investment and trading but also covers virtually all financial professionals within the EU. Bankers, traders, fund managers, exchange officials, and brokers—and their firms—all have to abide by its regulations. So do institutional and retail investors.
What does MiFID II stand for?
Markets in Financial Instruments Directive
The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union. MiFID was replaced by MiFID II in 2018.
What is MiFID II regulation in simple terms?
MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis.
What is the difference between MiFID II and Emir?
EMIR focuses on three primary objectives: reporting, clearing, and risk mitigation. However, the scope of MiFID II is limited to OTC derivatives. The clearing obligation under EMIR also applies to FCs and NFCs both of which need to clear OTC derivative trades through an authorized CCP.
What is the Emir double sided reporting regulation?
EMIR is referred to as a ‘double sided’ reporting regulation. In double sided reporting, both counterparties to a trade need to submit a report of their side of the trade. The submission requires using the same Unique Transaction Identifier (UTI) and economic details for the transaction.
What is Emir and what does it mean for You?
What is EMIR? EMIR is a European law that was proposed and implemented in order to increase supervision, improve visibility and transparency, and reduce overall reporting risks associated with the derivatives market.
Are eufcs subject to the Emir clearing obligation?
EU FC-s will not be subject to the EMIR clearing obligation, but will still need to comply with EMIR rules on margin exchange for uncleared derivatives and the other risk mitigation requirements applicable to FCs.