WHAT IS EMIR?

Regulation (EU) of the European Parliament and of the Council No. 648/2012 on OTC derivatives, central counterparties and trade repositories („EMIR“) and other related regulations of the Commission (EU). It deals with regulation of derivatives with an impact on financial institutions and their clients (private individuals and legal entities), particularly in EU member countries.

More information about EMIR

Areas of EMIR

EMIR imposes new obligations to financial institutions and their clients.

Obligations of financial institutions

reporting transactions with derivatives to trade repositories;
application of new risk management rules in respect of OTC derivatives not cleared via the central counterparty;
clearing of trades with derivatives where clearing is mandatory via the central counterparty, regardless of the traded derivative volume;
reconciliation and confirmation of trades with derivatives in accordance with EMIR rules;

Obligations of non-financial institutions (clients)

reporting transactions with derivatives to trade repositories;
application of new risk management rules in respect of OTC derivatives not cleared via the central counterparty;
monitor the total value of concluded OTC derivative contracts and, if above the threshold (EUR 1-3 billion depending on OTC derivative type), inform the CNB and ESMA;
learing of trades with derivatives where clearing is mandatory via the central counterparty if above the threshold;
reconciliation and confirmation of trades with derivatives in accordance with EMIR rules;

What is LEI and where can a client get one?

Clients other than private individuals require a LEI (Legal Entity Identifier) or PRE-LEI for the purpose of complying with the obligations stipulated under EMIR, particularly for reporting transactions to trade repositories.

Clients (except private individuals) who have concluded a derivative trade with Raiffeisenbank a.s. that remains unsettled till 16 August 2012 and clients who have concluded or conclude a derivative trade with Raiffeisenbank a.s. after 16 August 2012 must arrange for LEI at their cost.

Clients who have not concluded a derivative trade during the said period, but have concluded, for example, a currency conversion with T+2 or earlier settlement, or a deposit product, and will not carry out derivative trades in the future, are not obliged to acquire their LEI.

pre-LEI: 31570010000000004460

A list of current LEI or PRE-LEI providers is available at:

http://www.leiroc.org/publications/gls/lou_20130318.pdf

Raiffeisenbank a.s. informs its clients that Centrální depozitář cenných papírů, a.s. becomes a LEI provider since the half of December 2013.

Please follow the news section at www.cdcp.cz or

http://www.cdcp.cz/index.php/cz/tiskove-centrum/novinky-a-tiskove-zpravy/206

http://www.cdcp.cz/images/dokumenty/pravidla_predpisy_cdcp/pravidla/CDCP_pridelovani_LEI.pdf

Information about EMIR

http://www.cnb.cz/cs/dohled_financni_trh/legislativni_zakladna/

http://www.esma.europa.eu/page/European-Market-Infrastructure-Regulation-EMIR