Implementation of EMIR Margin Rules for uncleared OTC derivatives

17 January 2017

On 1 March EU rules will come into force that will require many counterparties to uncleared OTC derivatives to exchange variation margin.

Several other jurisdictions around the world are bringing in similar rules at this time. The effect of the rules is significant: some estimates put the number of agreements that will now need to be changed to deal with the new rules at between 150,000 to 200,000 globally, with the parties to those agreements needing to put in place a range of new processes to accommodate the new rules.

This briefing describes the obligations that will be imposed under the new EU rules and outlines the steps users of derivatives should now take, and updates our previous briefing on the topic published in October 2016.