On 2 December 2014, the Financial Securities and Markets Authority (FSMA), the Fédération belge du secteur financier (Febelfin) and the Federation of Enterprises (FEB) prepared and issued a joint communication on the application of the European regulation EMIR (as defined below) to non-financial counterparties active in derivatives transactions (the “Communication”).
The 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, (“EMIR”) entered into force on 15 March 2013 in order to promote transparency and reduce the risks of activities linked to derivatives products.
The Communication aims at promoting the awareness of the reporting of derivatives transactions requirements as well as various risk-mitigation techniques that apply to non-financial counterparties active in derivatives transactions.
In this context, the Communication sets out specific requirements on:
- The reporting of derivatives transactions to trade repositories.
- Information regarding mandatory clearing threshold with a central counterparty.
- The risk-mitigation techniques applicable to non-financial counterparties.
The Communication invites non-financial counterparties to proactively ensure their full compliance with the various requirements set out by EMIR.