The European Market Infrastructure Regulation (EMIR) on OTC derivatives, central counterparties and trade repositories (Regulation (EU) 648/2012) aims to reduce systemic risk and improve transparency in respect of OTC derivatives markets. It was originally introduced in response to G20 commitments to regulate OTC derivatives markets in the aftermath of the financial crisis.  

Key aspects of EMIR include: 

• a mandatory clearing obligation for certain classes of OTC derivatives contracts entered into between certain counterparties;
• risk-mitigation requirements for OTC derivatives that are not centrally cleared (including margin requirements);
• trade reporting obligations for all derivatives (both OTC and exchange traded derivatives); and
• a framework for the regulation of central counterparties (CCPs) and trade repositories (TRs).

Several EMIR obligations are implemented through Level 2 measures (Commission delegated acts and regulatory and implementing technical standards (RTS and ITS)).

EMIR has been subsequently amended by the following, each of which is considered in further detail below:

• Regulation (EU) No 2019/934 (EMIR Refit), which entered into force on 17 June 2019;
• Regulation (EU) No 2019/2099 (EMIR 2.2), which entered into force on 1 January 2020; and
• Regulation (EU) No 2024/2987 (EMIR 3), which entered into force on 24 December 2024.

EMIR Refit
EMIR Refit introduced targeted amendments to EMIR which aim to simplify and take a more proportionate approach to certain existing requirements. Key changes under the EMIR Refit included the introduction of:

• a clearing threshold for small financial counterparties (Small FCs) and application of the clearing threshold for non-financial counterparties (NFCs) on an asset class by asset class basis;
• powers for ESMA to request that the European Commission suspends the clearing obligation in certain circumstances;
• changes to reporting requirements, including requirements for FCs to report OTC derivative transactions on behalf of NFC- counterparties; and
• requirements for clearing members to provide services on fair, reasonable, non-discriminatory and transparent terms (FRANDT).

Please refer to the EMIR Refit overview client briefing for further details.

EMIR 2.2
​Alongside the EMIR Refit amendments, the EU co-legislators also agreed amendments to the provisions of EMIR relating to CCP supervision. The amendments aim to strengthen the supervision of CCPs in order to take into account the growing size, complexity and cross-border dimension of clearing in Europe. EMIR 2.2 establishes a CCP supervisory committee within ESMA, which will bring together supervisory authorities from relevant Member States as well as central banks responsible for the EU currencies cleared by CCPs. It also changes the existing system for recognition of non-EU CCPs, distinguishing between non-systemically important CCPs which will continue to be subject to the current regime, and systemically important CCPs ("Tier 2" CCPs) which are subject to stricter rules. A non-EU CCP may also be required to establish a presence in the EU if ESMA and the Commission decide (as a measure of last resort) that the CCP is so systemically important that it cannot be appropriately supervised under the recognition regime. 

EMIR 3.0
EMIR 3.0 represents the EU's most significant recalibration of its derivatives clearing framework since the EMIR Refit, with a clear policy objective of strengthening EU clearing capacity and reducing excessive reliance on third-country CCPs. Attention in 2026 has shifted firmly to implementation and operational readiness. The EMIR 3.0 package comprises EMIR 3.0 (a regulation amending EMIR, CRR and the MMF Regulation) and the EMIR 3.0 Directive (a directive amending CRD and the IFD). Key reforms are as follows:

• Active Account Requirement ("ARR"): The new rules aim to increase clearing at EU CCPs and reduce reliance on UK Tier 2 CCPs. Since Brexit, EU counterparties have continued to clear significant volumes of derivatives at UK CCPs pursuant to a time-limited equivalence decision which (following an extension of time) is due to expire on 30 June 2028 (unless further extended by the European Commission). Some clearing services offered by UK Tier 2 CCPs have been determined by ESMA to be of such substantial systemic importance to the EU's financial stability that they pose risks that are not capable of being fully mitigated under the EMIR framework for non-EU CCPs. EMIR 3.0 seeks to reduce this reliance on UK Tier 2 CCPs by requiring some EU counterparties to hold active accounts at EU CCPs through which they must clear a representative number of trades. The AAR has applied since June 2025 for the first in-scope counterparties. 
• First reporting under Article 7b: From July 2026 counterparties have been required to submit their first reports under Article 7b of EU EMIR. These reports will allow competent authorities to assess compliance with the operational, stress‑testing and representativeness elements of the AAR.
• Article 7d reporting: An additional new reporting regime expands the information that counterparties must provide to supervisors on their clearing activity at, and exposures to, third-country CCPs.  Articles 7b and 7d are intended to give regulators a much clearer picture of clearing patterns, concentrations and dependencies and to underpin future supervisory and policy decisions on EU clearing capacity.
• Client categorisation and clearing thresholds: Targeted changes aim to ensure that the scope of the clearing obligation remains proportionate and risk‑sensitive. New technical standards will be introduced, setting out a revised methodology to assess whether a counterparty exceeds the relevant thresholds.  ESMA has confirmed that firms can wait until their next annual recalculation date to apply the new categorisation rules (or reassess their status earlier).
• Other developments: ESMA has consulted on: (i) the acceptance of guarantees as CCP collateral and on certain aspects of CCP investment policy and (ii) exempting post‑trade risk reduction (PTRR) transactions from the clearing obligation, recognising the risk‑mitigating role of portfolio compression and similar tools.  Finally, ESMA has published final reports on margin transparency and information on clearing fees and associated costs, aimed at improving comparability and client understanding of clearing services.

UK EMIR
EMIR was onshored into UK domestic legislation pursuant to the European Union (Withdrawal) Act 2018 with necessary amendments to ensure its effective operation following Brexit.  Although the substance of the UK and EU regimes remains substantially similar, the amendments introduced by EMIR 3.0 will lead to further divergence between the two regimes (notably in relation to the active account requirement which has no equivalent in the UK).