On 6 August 2018, the FCA published a research note, that assesses the impact of certain requirements introduced by EMIR by making use of a sample of the data reported to trade repositories. Part 1 of the note focuses on options for the re-calibration of the scope of the clearing obligation for financial firms as part of the current EMIR Review. Part 2 of the note covers the impact of the phased-in implementation of the EMIR initial margin requirements.

From a sample of EU derivatives data, it was found that:

  • a clearing exemption calibrated to minimise the number of counterparties that will be subject to the clearing obligation, while maximising the amount of activity that is captured, could significantly reduce burdens on those counterparties without compromising EMIR’s overall objectives; and
  • the phase-ins implementing the initial margin requirements do not result in the intended gradual increase in the number of counterparties subject to the requirements. Rather there is a sharp increase in the very last phase-in.