Implementation of EMIR requirements | KPMG | PL

Implementation of EMIR requirements

Implementation of EMIR requirements

Implementation of European Market Infrastructure Regulation requirements.

Implementation of European Market Infrastructure Regulation requirements.

Major requirements of EMIR Regulation (European Market Infrastructure Regulation) cover central clearing of OTC derivatives (main impact on derivatives markets), detailed risk management requirements for bilateral OTC derivatives, derivatives reporting (OTC and exchange-traded) to trade repositories and organizational requirements for CCPs and clearing members.

EMIR Regulation entry into force caused significant changes in the existing infrastructure of derivative markets.

 

The main EMIR requirements that should be taken into account by market participants in the implementation process include:

  • Central clearing of OTC derivatives
  • Derivative transactions reporting to trade repositories
  • Timely exchange of collateral
  • Other requirements for bilateral OTC derivatives (timely confirmation, portfolio reconciliation, dispute resolution rules, portfolio compression, trade valuation requirements)
  • Requirements for clearing houses relating to authorization as CCPs (especially with regard to risk management system, applied methods and models, including their validation, and stress testing).

 

KPMG support

KPMG offers comprehensive support in the implementation of EMIR requirements, which covers e.g. support in the selection of target implementation model regarding access to central clearing infrastructure, comprehensive assistance in the implementation of the requirements for timely exchange of collateral, post implementation audit of external documentation and internal processes in terms of compliance with requirements for bilateral OTC derivatives, verification of templates reported to trade repositories, review of the documentation with clearing brokers with regard to business aspects, project management support, implementation support covering adjustment of existing processes, documentation, preparation of IT architecture and business requirements for changes in IT solutions, support in the launch of client clearing service (e.g. model of the service, business requirements, adjustments in processes and documentation), support for clearing houses covering gap identification, assistance in implementation activities, adjustment in the risk management system, methods and models applied, validation of models, support in the preparation of the authorization request.

 

Why KPMG?

  • Multidisciplinary team of consultants with broad experience in EMIR implementations.
  • Benchmarking to best market practices from other European countries in the area of EMIR Regulation.
  • Flexible approach to the Client’s needs and expectations.

 

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