European Market Infrastructure Regulation (EMIR)

The European Market Infrastructure Regulation (EMIR) is a set of rules designed to improve transparency and reduce risks in the derivatives markets across Europe. Derivatives are financial contracts like options or futures that can be complex and risky. EMIR requires parties involved in these trades to report details to regulators, use central clearinghouses to manage counterparty risk, and implement risk mitigation techniques. Overall, EMIR aims to make financial markets more stable and protect investors by ensuring better oversight and management of derivative transactions.