EMIR: the European derivatives regulation

EMIR (the European Market Infrastructure Regulation) is the central pillar of a wide-ranging programme of regulatory reform for the derivate market, based on G20 commitments following the financial crisis of 2008. The regulation is aimed specifically at increasing transparency and reducing counterparty default risk in the OTC derivative market, but also affects the ETD market.

The regulation defines a new regulatory framework for market participants in derivatives, driving significant change to operational and oversight processes for buy-side and sell-side market counterparties. Furthermore, it introduces a new actor in the form of Trade Repositories (TRs). Existing Central Counterparties (CCPs) are subject to more stringent organisational and governance requirements. It reshapes the derivative market place in profound ways.

EMIR targets primarily post-trade processes, introducing extensive reporting requirements and deeply affecting collateral management and clearing processes. Despite its focus on post-trade activities, its impacts are larger, affecting derivative trading, products and service design, business offer and developments for financial players.

Despite its entry into force in 2012, delayed release of final regulatory texts and the phase-in approach built into certain requirements means that implementation of EMIR compliant processes continues to be a challenge to the market. The requirements for collateral management and the central clearing obligation especially need to be considered by market players before their upcoming entry into force.

By the end of this course, participants will be able to:

• describe the starting point and objectives of legislative package to strengthen the regulation of the financial sector (asset management, fund service providers, private bank);
• explain the most important provisions resulting from the EMIR regulation;
• identify the issues impacting their business and take appropriate actions.

• EMIR: the essentials
• Transaction reporting
• Risk mitigation techniques
• Central clearing
• Operating model
• Key challenges and opportunities

Regulatory change and its translation into financial business and operational activities is a complex challenge that can only be addressed with a coherent and comprehensive approach. However, despite complexity and uncertainty, there are practical and concrete actions that can be taken now to prepare for the new derivative world.

This training course is designed as a first but essential step to grasping EMIR’s full implications. It is based on theory but supported by case studies. The programme also includes a significant amount of market feedback and insights.

An attendance certificate will be sent to participants.

This training is coordinated by Lionel Nicolas, Partner (consulting and EMIR Leader).

It will be presented by PwC experts specialised in the domains of the regulatory compliance and practical implementation of EMIR.

Lionel gained a specific experience in the investment management industry through several advisory projects; he is specialised in the project management.
Lionel has been involved, as project manager, in TA and FA business migration for major European actors.
He is specialised in fund accounting and transfer agent processes, EMIR, EU Savings directive, business process design, project management, procedures documentation, reorganisation of back-office department, implementation of a pan-European fund accounting system and systems like MultiFonds FA, GP3, Olympic.