EMIR mirrors the derivatives reforms in the US dodd-frank-act. Standardised classes of interest rate and credit derivatives must be cleared through authorised central counterparties, and all derivative contracts, exchange traded included, must be reported to a trade repository by both counterparties.
Uncleared trades attract operational risk mitigation duties such as timely confirmation, portfolio reconciliation and dispute resolution, plus initial and variation margin exchange for larger participants.
Non-financial counterparties below clearing thresholds are treated more lightly, which is why corporate hedgers face lighter obligations than funds. Later amendments simplified reporting and adjusted the treatment of smaller financial counterparties.
Related: dodd-frank-act, esma, mifir, futures-commission-merchant, clearing-broker