Assessing buy-side preparations for meeting derivatives reform under the European Market Infrastructure Regulation

Abstract

In 2012, Rule Financial undertook in-depth research into how financial institutions were preparing for the raft of over-the-counter (OTC) derivatives reform legislated under Dodd–Frank in the USA and the European Market Infrastructure Regulation (EMIR). The research found that the sell-side had invested heavily in new technology that would allow for connectivity to new counterparties and also meet trade reporting compliance. In comparison, the buy-side had spent only a fraction of what the sell-side had on reform technology. Now, with the first Dodd–Frank deadlines already passed, institutions are looking towards the impending EMIR deadlines coming into action in 2014. In this paper, Amrik Chawla provides an assessment following his recent engagement with the buy-side and discusses the options available to those who are preparing to meet the first deadlines.