Uncleared margin regulation

European Market Infrastructure Regulation Anatomy™ →Go uptown Index: Click ᐅ to expand: EMIR Navigation: European Market Infrastructure Regulation 648/2012 (EUR Lex) | uncleared margin regulation | clearing thresholds | non-financial counterparty Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Fonly known as “UMR”, or “SIMM”, or Reg Margin, among other cloying appellations, margin requirements for uncleared derivatives aim to reduce counterparty credit risk and encourage clearing of derivatives through price incentives.

The new rules require the bilateral exchange of initial margin (IM) and variation margin (VM), and apply to financial firms and systemically important non-financial entities. EMIR appears to apply to all non-EU non-financial entities, whereas EU corporates are only within scope if they exceed the EMIR clearing threshold.