Ascent announced today that its platform now includes the European Market Infrastructure Regulation (EMIR). EMIR affects businesses in the EU and is directed at over-the-counter (OTC) derivatives markets, central counterparties (parties which interpose themselves as a focal point between trade deals), and trade repositories (where records of trades are collected and maintained). EMIR establishes common rules for central counterparties and trade repositories, requiring qualified entities to report all derivatives contracts entered into a trade repository. Implemented by the European Securities and Markets Authority (ESMA), EMIR is intended to reduce systemic counterparty and operational risk, and help prevent future financial system collapses.
In 2015, the European Commission (EC) conducted an assessment of EMIR, which found that the regulation imposed overly complex and disproportionate burdens to non-financial counterparties, small financial counterparties and pension funds. Amendments to the regulation made in an effort to address these issues – known as EMIR Refit – were published in May 2019 and applied 20 days following publication i.e. 17 June 2019. EMIR Refit expanded the sphere of Alternative Investment Funds (AIFs) formerly considered as financial counterparties (FC) by EMIR. Equally, the change is significant in application due to the linkage between several obligations listed under EMIR and the subsequent classification of an entity more so as an FC.
Ascent’s AI-driven solutions make it easier for financial firms to assess regulatory changes and their impact to the business. Using artificial intelligence, Ascent automatically curates the regulatory obligations and rule changes that apply to each specific customer, which are then linked to the customer’s daily compliance tasks, controls, and policies and procedures. This targeted regulatory knowledge enables businesses to more efficiently and accurately assess and mitigate risk.
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