Which entities are covered by EMIR Refit?
A Financial counterparty (FC) is considered any firm that meets one of the following criteria. FCs are further categorised as i) Firms exceeding the clearing threshold (FC+) and ii) firms below the clearing threshold (SFC).- An investment firm authorised in accordance with Directive 2004/39/EC
- A credit institution authorised in accordance with Directive 2006/48/EC
- An insurance undertaking authorised in accordance with Directive 73/239/EEC.
- An assurance undertaking authorised in accordance with Directive 2002/83/EC.
- A reinsurance undertaking authorised in accordance with Directive 2005/68/EC.
- A UCITS and, where relevant, its management company, authorised in accordance with Directive 2009/65/EC.
- An institution for occupational retirement provision within the meaning of Article 6(a) of Directive 2003/41/EC.
- An alternative investment fund managed by AIFMs authorised or registered in accordance with Directive 2011/61/EU;
What are the clearing obligation thresholds?
The clearing obligation is applicable to contracts between financial counterparties (FCs) and non-financial counterparties (NFC) who exceed the relevant clearing thresholds as prescribed in UK EMIR. Please see clearing thresholds below:
- EUR 1 billion in gross notional value for OTC credit derivative contracts
- EUR 1 billion in gross notional value for OTC equity derivative contracts
- EUR 3 billion in gross notional value for OTC interest rate derivative contracts
- EUR 3 billion in gross notional value for OTC foreign exchange derivative contracts.
- EUR 4 billion in gross notional value for commodity derivative contracts
What is LEI?
A legal entity identifier (LEI) is a unique code to identify each legal entity that is counterparty to an EMIR reportable transaction. All counterparties entering into derivative transactions need to have a Legal Entity Identifier (LEI) in order to meet the UK and EU EMIR reporting obligations. LEIs are issued by Local Operating Units (LOUs) on the Global LEI System. The list of LOUs accredited by the Global LEI Foundation (GLEIF) can be found on the GLEIF website. Some of these registries serve a given country, while others offer services to entities worldwide.
What are the categories for NFC?
The categories below correspond to the main sections of NACE classification as defined in Regulation (EC) No 1893/2006 of the European Parliament and of the Council8:
‘A’ - Agriculture, forestry and fishing;
‘B’ - Mining and quarrying;
‘C’ - Manufacturing;
‘D’ - Electricity, gas, steam and air conditioning supply;
‘E’ - Water supply, sewerage, waste management and remediation activities;
‘F’ - Construction;
‘G’ - Wholesale and retail trade, repair of motor vehicles and motorcycles;
‘H’ - Transportation and storage;
‘I’ - Accommodation and food service activities;
‘J’ - Information and communication;
‘K’ - Financial and insurance activities;
‘L’ - Real estate activities;
‘M’ - Professional, scientific and technical activities;
‘N’ - Administrative and support service activities;
‘O’ - Public administration and defence; compulsory social security;
‘P’ - Education;
‘Q’ - Human health and social work activities;
‘R’ - Arts, entertainment and recreation;
‘S’ - Other service activities;
‘T’ - Activities of households as employers; undifferentiated goods – and services – producing activities of households for own use;
‘U’ - Activities of extraterritorial organizations and bodies.
Where more than one activity is reported, list the codes in order of the relative importance of the corresponding activities.