New rules for derivatives

The European Market Infrastructure Regulation (EMIR) places new obligations on banks and companies trading in OTC derivatives.

EMIR: Commerzbank will take care of the reporting requirements upon request

The EU Regulation on OTC derivatives, central counterparties and trade repositories (European Market Infrastructure Regulation, or “EMIR” for short) came into force on 16 August 2012, obliging banks and their clients to henceforth take extra measures when trading in OTC derivatives. The term “OTC derivatives” encompasses any financial instruments used, for example, to hedge business risks. The aim is to reduce systemic risks in derivatives trading and to generally make this area of trading more transparent and safer.

To this end, all OTC derivatives contracts concluded, modified or terminated by financial and non-financial counterparties must be reported to a trade repository. This reporting requirement is scheduled to come into effect for all derivative categories on 1 January 2014. In addition, reporting requirements apply retrospectively to OTC derivatives in existence on 16 August 2012 or concluded on or after that date. There are also additional mandatory risk mitigation techniques with which Commerzbank can provide assistance.

Lower costs and a lighter workload

Companies which do not want to report to a trade repository themselves can delegate the reporting to Commerzbank. As well as reducing costs, this considerably lightens the workload of the company’s financial management team.

Further advantages as a Commerzbank customer

  • A capable contact is on hand to deal with any questions relating to EMIR.
  • Commerzbank works closely with the regulatory authority, so it is well informed.
  • Portfolio reconciliation under EMIR gives you a regular rundown of your transactions with Commerzbank at current market prices.

If you require more information, please do not hesitate to contact Commerzbank’s risk management specialists.

Commerzbank AG Pre-LEI