Regulation
Participant classification under EMIR
Trades executed on the venue are bilateral OTC derivative contracts between the two participants. Each participant's obligations under UK EMIR (and EU EMIR where relevant) depend on its classification, which is recorded at onboarding.
| Classification | Typical participants | Reporting | Clearing | Margin |
|---|---|---|---|---|
| Financial counterparty (FC) | Banks, investment firms, funds above the clearing threshold | Reports its own trades | Not applicable to FX options today | Bilateral margin rules apply |
| Small financial counterparty (SFC) | Funds and firms below the clearing threshold | Reports its own trades | Not applicable | Bilateral margin rules apply |
| Non-financial counterparty above threshold (NFC+) | Large corporates | Reports its own trades | Not applicable | Bilateral margin rules apply |
| Non-financial counterparty below threshold (NFC-) | Corporates hedging commercial risk | FC counterparty reports on its behalf | Not applicable | Exempt |
This table is a general summary for information. Compliance should review the wording, in particular the treatment of physically settled FX options under the margin rules, before publication.
What the venue does
Records each participant's classification at onboarding, includes it in trade data, and provides the fields participants need to report under EMIR.
What the venue does not do
The venue does not report under EMIR on behalf of participants, does not intermediate credit and is not a counterparty to any trade.
Changes in classification
Participants must notify the venue of any change in classification so that trade data remains accurate.
Notify a change