Hereby we would like to inform you on Regulation (EU) No 648/2012 of the European Parliament and the Council of 4 July 2012 on Over-The-Counter (OTC) derivatives, central counterparties and trade repositories was adopted, as well as all relevant and related to this Regulation other regulations, including but not limited to implementing/delegated regulations („EMIR”), it is required to make a new agreements or supplement the existing relations between JCS „Citadele banka” („Bank”) and its clients with whom the Bank makes OTC derivative contracts.
EMIR is Regulation (EU) No 648/2012 of the European Parliament and the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories was adopted, as well as all relevant and related to this Regulation other regulations. They set framework of obligations and requirements on all parties that enter into a derivative contract and is applicable to financial and non-financial counterparties along with Central Counterparties (CCPs) and Trade Repositories (TRs) (also for outside of EU registered parties).
EMIR regulation covers derivative contracts, such as: 1) options, 2) currency forwards, 3) swaps, 4) margin forwards etc. similar contracts.
Main EMIR requirements are:
Reporting on derivative contracts must occur by the following working day of the execution, modification or termination of a derivative contract.
Trade Reporting is obligatory to all undertakings registered in EU. Both parties are obligatory to report, i.e. you, if your company is registered in EU, as well as the Bank. You can delegate reporting to a third party or to your counterparty to the contract (if such has been agreed). It is important to note that you still remain legally responsible for the report.
Specific reporting requirements to trade repositories will be applied to parties on OTC and exchange traded derivative contracts starting from 12th of February 2014. In order to report a contract to a Trade Repository, you must obtain a Legal Entity Identifier (LEI), as per the process set out below.
Risk mitigation techniques under EMIR include timely confirmation, portfolio reconciliation, dispute resolution and other EMIR requirements. EMIR regulatory framework requires confirming each contract which is not subject to clearing requirements. Risk mitigation measures are subject to change on amount and count of contracts.
Taking into account agreements between customer and bank with derivative contracts, we need customer to perform the following:
Detailed information is available in document ‘EMIR frequently asked questions’ as also on ESMA homepage.
In case of any questions please contact bank by email firstname.lastname@example.org.
Bank cannot advise its clients on their legal and regulatory obligations under EMIR and we advise you to take independent legal advice. This document should not be considered as an offer or a solicitation to engage in any trading strategy or to purchase or sell any financial instruments. Bank makes no representation, express or implied, that such information and opinions are accurate or complete. In any event, information in this letter is intended to provide only a general outline of the subjects covered, is subject to change and additional requirements not mentioned in this letter could be necessary to observe. Bank accepts no liability whatsoever for any direct, indirect or consequential loss arising from any use of material contained in this document.