SunGard's Daniel Parker gives his view on the EU rejection of EMIR.
The EU rejection of EMIR on February 5, 2013 is specifically
directed at non-financial companies, such as airlines,
agriculture firms and other corporates that use derivatives to
hedge against commercial activities. The ruling likely provides
much-deserved relief to non-financial hedgers by modifying,
reducing or potentially eliminating a threshold-based clearing
Under the European Markets Infrastructure Regulation (EMIR),
Article 10 prescribes that where a non-financial counterparty
takes positions in OTC derivative contracts and these positions
exceed a defined clearing threshold; the non-financial
counterparty must notify authorities and clear all future
derivatives. In essence, the non-financial counterparty is
"knocked-in" to mandatory regulations based exclusively on
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