What is investment firm directive?
In essence, IFD/IFR primarily bring about changes for small and medium-sized investment firms by exempting them from the supervisory framework of CRD/CRR and putting them under a separate set of rules in addition to the existing MiFID II/MiFIR provisions.
What is IFD and IFR?
On 16 April, the European Parliament adopted in Plenary a Regulation on the prudential requirements for investment firms (IFR) and a Directive on the prudential supervision of investment firms (IFD). IFR/IFD introduces a new prudential regime for certain investment firms, tailored to their activities and asset size.
Does MiFID apply to insurance companies?
Both MiFID II and IDD can be relevant for banks and insurance companies if they either are product providers or distributors of the respective products.
What is the difference between MiFID and MiFID 2?
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.
Who does MiFID 2 apply?
MIFID II also applies to European providers of MiFID services in the European Economic Area (EEA)1, such as investment managers of pension funds, European firms which provide MiFID services and to a certain extent credit institutions.
Does MiFID II apply to UK after Brexit?
The UK’s post-Brexit balancing act begins with MiFID II.
Is UK subject to MiFID?
Accordingly, EU “passporting” rights under the Alternative Investment Fund Managers Directive (AIFMD) with respect to the marketing of funds or provision of fund management services, and under the Markets in Financial Instruments Directive (MiFID) with respect to the provision of cross-border investment services and …
Is MiFID II still in force?
MiFID is part of the regulatory changes sweeping the EU and impacting the compliance departments of all financial firms that operate there. MiFID has been in force across the European Union since 2007. MiFID was replaced by an updated regulatory directive, MiFID II, in 2018.
What is difference between Emir and MiFID?
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.
Who does emir apply to?
EMIR covers entities that qualify for derivative contracts in regards to interest rate, equity, foreign exchange, or credit and commodity derivatives. It also outlines three sets of obligations, including the clearing, reporting and risk mitigation of applicable products.
What is the purpose of Emir?
The most important aim of the European Markets Infrastructure Regulation (EMIR) is to increase the transparency of the over the counter (OTC) derivatives market, so that the EU with the help of European Securities and Markets Authority (ESMA) to have a clear view about the turnover, participants and any possible market …
Who needs to report emir?
Article 9 of EMIR requires all Union derivatives market participants to report details of all their derivative contracts to a trade repository registered or recognised by ESMA (the Reporting Obligation).
Who is subject to Emir reporting?
EMIR mandates reporting of all derivatives to Trade Repositories (TRs). TRs centrally collect and maintain the records of all derivative contracts. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.
What is MiFID reporting?
The transaction reporting obligation under MiFID II/MiFIR captures: financial instruments which are admitted to trading or traded on a trading venue or for which a request for admission to trading has been made, financial instruments where the underlying is a financial instrument traded on a trading venue, and.
What is clearing under EMIR?
In the context of EMIR ‘clearing’ means the process of establishing positions, including the calculation of net obligations, and ensuring that financial instruments, cash, or both, are available to secure the exposures arising from those positions.
What derivatives should be cleared?
Cleared derivatives are trades negotiated over-the-counter (OTC) and are limited to standardized contracts. The clearing house assumes the role of counterparty to all trades and imposes mandatory margin requirements (initial margin and variation margin).
What is uncleared OTC derivatives?
These new uncleared margin rules are the final pieces of the EMIR risk mitigation plans for OTC derivatives and are part of the EU implementation of commitments made by the G20 group of countries to reduce derivative market risks. …
What swaps are required to be cleared?
Many market participants are now required to begin clearing certain index Credit Default Swaps (CDS), Interest Rate Swaps (IRS), Fixed-to-Floating Swaps, Basis Swaps, Forward Rate Agreements and Overnight Index Swaps that they enter into.
Are permitted swap transactions required to be cleared?
Required transactions are transactions involving a swap that is subject to the CEA’s requirement under Section 2(h)(8) that all swaps subject to mandatory clearing be executed on DCMs or SEFs, unless no DCM or SEF makes the swap available to trade.
What does it mean to clear a swap?
Related Definitions Cleared Swap means a Swap that either is required to be cleared pursuant to Section 2(h)(2)(D) of the CEA and CFTC Regulation 39.5 or that is submitted for clearing to a Derivatives Clearing Organization by or on behalf of the parties to the Swap even though such Swap is not required to be cleared.