Last week, the European Commission submitted its report to the Parliament and Council on its review of EMIR, as required under Article 85(1). Overall, the Commission is not currently proposing any fundamental changes to the core requirements under EMIR, however, it has put forward a number of adjustments to simplify and reduce regulatory costs where this does not compromise the overall objectives. Of interest to AIMA members, the report proposes a full review of reporting rules to identify changes to streamline reporting, however, the focus does appear to be on improving functioning of trade repositories. The report also proposes a review of the scope of the requirements to contracts entered into before the clearing obligation (‘frontloading’) and intragroup transactions. Other proposals forming part of the review include: (i) incorporating a mechanism to suspend the clearing obligation to avoid market disruption where a CCP is in resolution; (ii) improving information sharing between CCPs and clearing members regarding margin standards and procyclicality requirements; and (iii) mandating endorsement of initial margin models by authorities. The legislative review will take place in 2017 and AIMA will continue to engage with the European authorities throughout the process. If members have any questions, please contact Adam Jacobs-Dean or Adele Rentsch.