EMIR & EMIR REFIT: beginning of the trialogue
On 12 June 2018, the European Parliament, in a plenary session, voted for its version of the draft revision of the EMIR (EU) regulation no. 648/2012 REFIT.
On 12 June 2018, the European Parliament, in a plenary session, voted for its version of the draft revision of the EMIR (EU) regulation no. 648/2012 REFIT. This vote now paves the way for a trialogue phase at EU level between the Commission, the Parliament and the Council with a view to adopting a definitive text which could be published by early 2019.
Keep in mind that the revision of EMIR essentially consists in qualifying certain constraints according to the typology of the players/contracts (creation of two categories of financial counterparties, one of which will be exempted from the obligation of compensation, limitation of the obligation of compensation for non-financial counterparties called "NFC +”, etc.).
The arrival of EMIR Refit is expected to make it possible to deal on a long-term basis with variable margins on physically settled FX forwards. Although the idea of reducing the variable margin requirement was not included in the Commission's initial proposal, it was nevertheless taken up by Parliament and the Council.