Reform of the OTC derivatives market was high on the agenda following the 2008 financial crisis, during which unregulated OTC trades were believed to have exacerbated losses. In response, the US and Europe developed new regulations aimed at increasing market transparency and reducing the build-up of systemic risk.

EMIR arrived on the scene in 2014 as the European answer to improving the regulation and functioning of the OTC derivatives market. It imposes strict rules on the clearing and reporting of OTC instruments. It also mandates heightened risk management procedures (in the form of higher capital reserves) for transactions that are not cleared.

Financial institutions affected by EMIR are required to be more thorough than ever when monitoring OTC trading activity. They must be clear on the value of derivative instruments and be prepared to report valuations to central counterparties as and when requested. 

Thomson Reuters is helping clients to meet data and valuation challenges associated with EMIR. 

Thomson Reuters Pricing Service is an award-winning independent, evaluated pricing service covering over 2.5 million fixed income securities, OTC derivatives and hard-to-value assets. It provides trading entities and financial institutions with the information they need to value illiquid securities, maintain adequate capital reserves and validate collateral calls from central counterparties. 

We also offer comprehensive, auditable Entity Risk Data - designed to shed light on who're really transacting with. Our high-quality data encompasses over 1 million business entities across 250 markets. New LEIs are incorporated continuously with cross-referencing to other entity codes.

More recently, we have launched a Swap Execution Facility (SEF), allowing you to trade FX non-deliverable forwards (NDFs) and FX options electronically. 

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