GFMA Briefing Note - Treatment of FX Instruments Under EMIR

3 December 2010

DOWNLOAD

GFMA Briefing Note - Treatment of FX Instruments Under EMIR

Download Adobe ReaderGet the free Adobe Reader to view these documents.

The Global FX Division authored a briefing note on the European Commission's proposed regulation on OTC derivatives, central counterparties and trade repositories, specifically in regards to the treatment of FX instruments under EMIR.

Introduction:

This note sets out the position of the Global FX Division of AFME, SIFMA and ASIFMA regarding the treatment of FX instruments under the proposed regulation covering OTC derivatives, central counterparties and trade repositories, commonly known as EMIR.

 

With a turnover of some EUR2.9 trillion / US$4 trillion per day the FX market is the world’s largest financial market. It is the means by which cross border payments are effected and currency risk is managed in the world’s financial system. It differs from the OTC derivative markets in that it has many more participants and transactions, which are much simpler and short term. We are therefore concerned with treating the vast majority of FX transactions, which are simple exchanges of currency, as if they are “derivatives”.

 

  • GFMA smartbrief
    Free, essential financial industry news, delivered daily.
    Sign up now.
  • Gfma weekly update
    Regulatory and legislative developments from across the globe. View Current Issue
    Sign up now.
  • GFMA LEI Update
    Stay up to date with legal entity identifier developments.
    View Current Issue
    Sign up now
  • Global Regulatory Reform Proposals
    Side-by-side comparisons of numerous regulatory reform proposals.
     View now.
Members of the GFMA Alliance afme asifma sifma