The first obligations of the European Market Infrastructure Regulation (EMIR) became effective on March 15 this year. These included new rules on confirmations, the need for non-financial counterparties over the clearing threshold to notify their regulators, as well as the requirement for financial counterparties and non-financial counterparties over the clearing threshold to produce daily mark-to-market or mark-to-model valuations of their over-the-counter (OTC) derivatives positions.
Joe Halberstadt, head of foreign exchange (FX) and derivatives markets at interbank messaging group Swift, says a start in clearing FX products has been made ahead of the regulations and expects that FX clearing will take off later this year.
