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EMIR is Europe's key piece of derivatives reform, and will mirror parts of the Dodd-Frank Act in the US. Both pieces of reform reflect efforts by US and European regulators to meet commitments made by leaders of the G20 countries at a Pittsburgh conference in 2009, to reduce risk in the financial derivatives markets after the financial crisis.
Pressing issues include determining which types of derivatives will be eligible for clearing, and setting organisational standards for clearing houses and data repositories. It must also establish a threshold for activity levels conducted by non-financial firms at which they come under the umbrella of the legislation.
In February, it was given a three-month extension to flesh out the standards, and needs to report its final technical standards to the European Commission by the end of September.
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