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Financial counterparty: Difference between revisions
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{{a|emir|{{subtable|“Financial counterparty” means 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 and an alternative investment fund managed by AIFMs authorised or registered in accordance with Directive 2011/61/EU;}} }} | {{a|emir|{{subtable|“Financial counterparty” means 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 and an alternative investment fund managed by AIFMs authorised or registered in accordance with Directive 2011/61/EU;}} }}The EU’s EMIR regulation — which deals with unglamorous but important stuff like trade reporting, mandatory clearing of derivatives, regulation of central counterparties and regulatory margin, and makes a big fuss about whether one is a “[[financial counterparty]]”, and therefore automatically in scope for the full horror of European infrastructure regulation, or [[Non-financial counterparty|not]], in which case your scoping will have to do with how often, in your daily travels, you interact with the regulated bits of the financial system. | ||
In a nutshell: | In a nutshell the following are financial counterparties: | ||
{{quote| | {{quote| | ||
*a [[MiFID]] investment firm | *a [[MiFID]] investment firm | ||
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*An EU-regulated [[pension fund]]; and | *An EU-regulated [[pension fund]]; and | ||
*An [[Alternative investment fund|AIF]] and its [[AIFM - AIFMD Provision|AIFM]]}} | *An [[Alternative investment fund|AIF]] and its [[AIFM - AIFMD Provision|AIFM]]}} | ||
Which means a number of potentially important entities will not be. For example: | |||
*Ordinary corporates — your Vodafones, Apples and, Volkswagens, who will generally be ''clients'' | |||
*Commodity traders who are not active in regulated financial markets | |||
*any [[Special purpose vehicle|espievies]] that are not specifically set up as investment funds — so repackaging SPVs, securitisation vehicles — that kind of thing. | |||