The new European Markets Infrastructure Regulation (EMIR) (238-page / 613KB PDF) will apply "from the end of the year", the Council said in a statement, ensuring that the European Union meets its G20 commitments on regulation of the derivatives market. OTC derivatives are those not traded on a regulated stock exchange, but instead privately negotiated between two parties.
Once EMIR is in force all OTC derivative contracts will have to be cleared through central counterparties, while all derivative contracts including those involving OTC derivatives will have to be reported to central trade repositories.