UK EMIR—essentials

Copyright © 2025 LexisNexis
Published by a LexisNexis Financial Services expert
Practice notes

UK EMIR—essentials

Copyright © 2025 LexisNexis

Published by a LexisNexis Financial Services expert

Practice notes
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This PrACTice Note explains the key elements of Assimilated Regulation (EU) 648/2012 (UK EMIR) and covers: (1) the clearing obligation, (2) the trade Reporting obligation, (3) margin requirements for non-centrally cleared over the counter (OTC) derivatives, and (4) additional risk mitigation requirements for uncleared trades, including timely confirmation, portfolio reconciliation, portfolio compression, and dispute resolution.

Section 1(1) and Schedule 1 Part 1 of the Financial Services and Markets Act 2023 (FSMA 2023) provide for the revocation of UK EMIR with effect from a date or dates to be appointed by HM Treasury. No date has yet been appointed.

UK EMIR—Introduction

Key requirements of UK EMIR

UK EMIR is the principal UK measure regulating the over the counter (OTC) derivatives market. Its key elements are:

  1. •

    a requirement to clear certain standardised OTC derivatives traded by certain counterparties through a central counterparty (CCP)—see Clearing obligation below

  2. •

    a requirement to report derivative contracts to a trade repository (TR)—see Trade reporting obligation below

  3. •

    margin requirements for non-centrally cleared OTC derivatives traded by certain counterparties—see Margin requirements below, and

  4. •

    additional risk mitigation

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
PRA definition
What does PRA mean?

The Prudential Regulation authority (PRA) is responsible for the prudential regulation and supervision of 1,500 banks, building societies, credit unions, insurers and major investment firms in the UK.

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