Clearing and Settlement


The European Market Infrastructure Regulation (EMIR) introduces new rules for over-the-counter (OTC) derivative markets and for central counterparty clearing houses (CCPs). OTC derivatives will have to move to CCPs and there will, for the first time, be a harmonized regulatory framework for CCPs in the EU.

EMIR was agreed at the end of 2012. CCPs had to apply for (re)authorization under the new European regime during 2013. Since then, classes of derivative instruments are being considered for mandatory clearing and the first clearing mandate is expected to take effect during 2016.

To reduce risk and enhance transparency, the new rules introduce:
  • Stringent rules for CCPs on prudential (e.g. how much capital CCPs need to hold), organizational (e.g. role of risk committees) and conduct of business standards (e.g. disclosure of prices).
  • Risk mitigation standards for contracts not cleared by a CCP (e.g. exchange of collateral)
  • The use of electronic means for the timely confirmation of the terms of OTC derivatives contracts. This allows counterparties to net the confirmed transaction against other transactions and ensure accurate book keeping.
  • Detailed information on derivative contracts entered into by EU financial and non-financial firms are reported to trade repositories and made accessible to supervisory authorities.
  • Trade repositories publish aggregate positions by class of derivatives accessible to all market participants

Further, a review of the EMIR framework has already started during 2015. Nasdaq has replied to several consultations related to EMIR:

Review of EMIR >

Reply Form for the Consultation Paper on Indirect Clearing Arrangements under EMIR and MiFI >

Clearing obligation of Nordic currencies >

The European Commission’s EMIR - derivatives website >


The new Regulation for Central Securities Depositories (CSDs) aims at improving settlement discipline, introducing common prudential and regulatory framework for CSDs and create a true internal market for CSD services in the EU. The European Commission’s CSD website >

Recovery and Resolution of CCPs 

The EU is considering developing a legislative framework for Recovery and resolution of CCPs.

The European Commission held a consultation during 2012 and is expected to propose legislation during 2015 or 2016.

Nasdaq has drafted a position paper on Recovery and Resolution. View the position paper >

The European Commission’s Consultation on a Recovery and Resolution Regime >

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