14. The Regulation of CCPs in Europe: The European Market Infrastructure Regulation (EMIR)

This chapter provides some background information on the regulation of clearing houses, that emerged as a topical issue in the aftermath of the financial crisis of 2008. After a brief introduction, the chapter elaborates on the definition of market infrastructure, clearing houses, and clearing, while taking into consideration their pros and cons from different perspectives. It also provides an analysis of the general framework of the European Market Infrastructure Regulation (EMIR). Focusing on its main provisions applicable to clearing houses, it emphasizes those related to their authorization, corporate governance, and prudential requirements. The chapter provides some critical considerations of these aspects from an international perspective.