EMIR Risk Mitigation Techniques for Bilateral OTC Derivative Settlement

Banks, insurers, reinsurers, pension funds, and premium pension institutions must notify DNB monthly of unconfirmed OTC derivative transactions outstanding for more than five business days. These entities are also required to report disputes with counterparties regarding valuation or collateral exchange if the dispute value is at least €15 million and remains unresolved after fifteen business days. Additionally, financial and non-financial counterparties subject to initial margin exchange requirements must apply for a license for any changes to their existing initial margin models, including recalibrations, as soon as possible after such changes occur.

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Grondslag

Verordening Nr 648/2012 (Verordening - 648/2012 - EN - EUR-Lex) (Refers to an external site)

Factsheet

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The central clearing obligation imposed by EMIR relates to standardised OTC derivatives contracts. Derivatives contracts that do not require central clearing may be cleared bilaterally. EMIR has set strict conditions for this bilateral clearing to ensure an equal level of risk control of these transactions compared to central clearing of transactions.

Published: 25 June 2025

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Lineage: In force

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Source: De Nederlandsche Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works