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124-619: The regulation was initially adopted in 2012 and an amended version, the EMIR Refit regulation, was later on adopted in 2019. The European Market Infrastructure Regulation (EMIR) is EU regulation for over-the-counter (OTC) derivatives, central counterparties and trade repositories. EMIR was introduced by the European Union (EU) as implementation of the G20 commitment to reduce systemic , counterparty and operational risk , and increase transparency in

248-425: A Unique Transaction Identifier (UTI), legal entity identifier (LEI), information on the trading capacity of the counterparty, and the marked-to-market valuation of the position. The counterparty data in a report includes 26 fields for data and the common data includes 59 fields of data. These fields include an LEI, or a unique 20 digit alphanumeric code that may be used for eight of the 26 counterparty data fields, and

372-779: A customs union . They also signed another pact creating the European Atomic Energy Community (Euratom) for cooperation in developing nuclear power. Both treaties came into force in 1958. Although the EEC and Euratom were created separately from the ECSC, they shared the same courts and the Common Assembly. The EEC was headed by Walter Hallstein ( Hallstein Commission ) and Euratom was headed by Louis Armand ( Armand Commission ) and then Étienne Hirsch ( Hirsch Commission ). The OEEC

496-639: A proposal that linked funding with adherence to the rule of law . The budget included a COVID-19 recovery fund of €750   billion. The budget may still be approved if Hungary and Poland withdraw their vetoes after further negotiations in the council and the European Council . Bodies combatting fraud have also been established, including the European Anti-fraud Office and the European Public Prosecutor's Office . The latter

620-518: A " collective head of state " and ratifies important documents (for example, international agreements and treaties). Tasks for the president of the European Council are ensuring the external representation of the EU, driving consensus and resolving divergences among member states, both during meetings of the European Council and over the periods between them. The European Council should not be mistaken for

744-551: A consultation on EMIR's clearing obligation. The consultation closed on November 6, 2014. ESMA published the eleventh iteration of its Q&A report on EMIR on October 24, 2014. In the report, ESMA announced that any third country firm not originally subject to EMIR trade reporting obligations that subsequently becomes a financial counterparty subject to EMIR must comply with the EMIR reporting obligation in respect of all outstanding derivatives contracts. ESMA conducted another consultation on

868-737: A discussion paper on the topic, and in March 2012, the Authority held a public discussion in Paris to receive input on the questions put forth in the discussion paper. On June 25, 2012, ESMA released a consultation paper publicizing its proposed technical standards. In July, ESMA hosted another open hearing in Paris. The authority released a final draft technical standards to the European Commission on September 27, 2012. EMIR entered into force on August 16, 2012, but most of its provisions only began to apply after

992-425: A hybrid system of supranational and intergovernmental decision-making, and according to the principle of conferral (which says that it should act only within the limits of the competences conferred on it by the treaties ) and of subsidiarity (which says that it should act only where an objective cannot be sufficiently achieved by the member states acting alone). Laws made by the EU institutions are passed in

1116-532: A length of time t {\displaystyle t} is: which can be used to convert the return R {\displaystyle R} to a compound rate of return r {\displaystyle r} : For example, a 33.1% return over 3 months is equivalent to a rate of: per month with reinvestment. Annualization is the process described above of converting a return R {\displaystyle R} to an annual rate of return r {\displaystyle r} , where

1240-560: A mandatory clearing obligation for review. Counterparties must file reports wherever they enter into derivatives transactions, in the European Economic Area or elsewhere. The European Securities and Markets Authority (ESMA) applies mandatory clearing obligations for specific OTC derivative contracts if a contract has been assigned a central counterparty under EMIR. The obligations require that over-the-counter derivatives trades are cleared through central counterparties. EMIR granted

1364-899: A new dispute resolution process, daily market reports and exchanges and the public exchange of collateral between parties. Regulation (EU) No 648/2012, as EMIR is referred to in European legal documentation, was implemented in 2012 through the standard co-decision procedure of the Council of the European Union , and the European Parliament , which set out a detailed framework for the legislation. The European Securities and Markets Authority (ESMA) began developing technical standards on regulation of OTC derivatives, central counterparties and trade repositories to implement EMIR in February 2012. ESMA released

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1488-412: A percentage of the amount invested. The latter is also called the holding period return . A loss instead of a profit is described as a negative return , assuming the amount invested is greater than zero. To compare returns over time periods of different lengths on an equal basis, it is useful to convert each return into a return over a period of time of a standard length. The result of the conversion

1612-463: A phased basis over a period of several years. Entities that qualify for EMIR must report every derivative contract they enter into to a trade repository. They must also implement new risk management standards according to EMIR, including operational processes and margining related to their bilateral OTC derivatives. EMIR also covers trades that are not cleared by a central counterparty, and entities that qualify must submit all OTC derivatives subject to

1736-525: A reaction to World War I and its aftermath. In this light the first advances for the idea of European integration were made. In 1920 John Maynard Keynes proposed a European customs union for the struggling post-war European economies, and in 1923 the oldest organisation for European integration, the Paneuropean Union was founded, led by Richard von Coudenhove-Kalergi , who later would found in June 1947

1860-478: A regulation's technical standards take place. These technical standards were adopted by the European Commission on December 19, 2012. After more discussion and public reports, EMIR was published in the Official Journal of the European Union on July 27, 2012, and the technical standards of EMIR came into effect on March 15, 2013. Many involved parties expressed difficulty reporting during the first six months of

1984-594: A right of unilateral withdrawal under Article 50 of the Treaty on European Union. In addition, the principle of subsidiarity requires that only those matters that need to be determined collectively are so determined. Under the principle of supremacy , national courts are required to enforce the treaties that their member states have ratified, even if doing so requires them to ignore conflicting national law, and (within limits) even constitutional provisions. The direct effect and supremacy doctrines were not explicitly set out in

2108-401: A second EMIR statutory instrument, which outlines additional supervisory and enforcement powers allotted to central counterparties during trading and clearing. In September 2013, new obligations embedded into EMIR took effect, requiring EU banks and their counterparties to discuss and agree on processes and procedures for portfolio reconciliation and dispute resolution of derivatives executed in

2232-410: A sequence of logarithmic rates of return over equal successive periods. This formula can also be used when there is no reinvestment of returns, any losses are made good by topping up the capital investment and all periods are of equal length. If compounding is performed, (i.e. if gains are reinvested and losses accumulated), and if all periods are of equal length, then using the time-weighted method ,

2356-580: A set number of seats and is divided into sub-national constituencies where this does not affect the proportional nature of the voting system. In the ordinary legislative procedure , the European Commission proposes legislation, which requires the joint approval of the European Parliament and the Council of the European Union to pass. This process applies to nearly all areas, including the EU budget . The parliament

2480-693: A temporary exemption from these guidelines to pension funds until August 2017. This exemption was further extended in a review of the regulation until 18 June 2021. All parties involved in trades must submit timely notifications of approaching, exceeding, and no longer exceeding the clearing threshold as defined by EMIR. This clearing regulation applies to financial counterparties such as banks, insurers, and managers of assets , as well as non-financial counterparties. EMIR requires that all entities entering into derivative contracts must submit reports to their corresponding trade repositories, outlining each over-the-counter trade. These mandatory reports must also include

2604-900: A threat, in reality the actual concern was for the Soviet Union. A few days later came the announcement of the Truman Doctrine which pledged American support for democracies to counter the Soviets. Immediately following the February 1948 coup d'état by the Communist Party of Czechoslovakia , the London Six-Power Conference was held, resulting in the Soviet boycott of the Allied Control Council and its incapacitation, an event marking

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2728-497: A variety of forms. Generally speaking, they can be classified into two groups: those which come into force without the necessity for national implementation measures (regulations) and those which specifically require national implementation measures (directives). EU policy is in general promulgated by EU directives , which are then implemented in the domestic legislation of its member states , and EU regulations , which are immediately enforceable in all member states. Lobbying at

2852-411: A year, such as overnight interbank rates. The logarithmic return or continuously compounded return , also known as force of interest , is: and the logarithmic rate of return is: or equivalently it is the solution r {\displaystyle r} to the equation: where: For example, if a stock is priced at US$ 3.570 per share at the close on one day, and at US$ 3.575 per share at

2976-526: Is a European Commission economic recovery package to support the EU member states to recover from the COVID-19 pandemic , in particular those that have been particularly hard hit. It is sometimes styled NextGenerationEU and Next Gen EU , and also called the European Union Recovery Instrument . Agreed in principle by the European Council on 21 July 2020 and adopted on 14 December 2020,

3100-474: Is a supranational political and economic union of 27 member states that are located primarily in Europe. The Union has a total area of 4,233,255 km (1,634,469 sq mi) and an estimated total population of over 449   million. The EU has often been described as a sui generis political entity combining the characteristics of both a federation and a confederation . Containing 5.8% of

3224-642: Is a decentralized independent body of the European Union (EU), established under the Treaty of Lisbon between 22 of the 27 states of the EU following the method of enhanced cooperation . The European Public Prosecutor's Office investigate and prosecute fraud against the budget of the European Union and other crimes against the EU's financial interests including fraud concerning EU funds of over €10,000 and cross-border VAT fraud cases involving damages above €10 million. Member states retain in principle all powers except those that they have agreed collectively to delegate to

3348-618: Is based in Kirchberg, Luxembourg City alongside the Court of Justice of the European Union and the European Court of Auditors. Constitutionally, the EU bears some resemblance to both a confederation and a federation , but has not formally defined itself as either. (It does not have a formal constitution: its status is defined by the Treaty of European Union and the Treaty on the Functioning of

3472-444: Is called the rate of return . Typically, the period of time is a year, in which case the rate of return is also called the annualized return , and the conversion process, described below, is called annualization . The return on investment (ROI) is return per dollar invested. It is a measure of investment performance, as opposed to size (c.f. return on equity , return on assets , return on capital employed ). The return , or

3596-538: Is called the time-weighted method , or geometric linking, or compounding together the holding period returns in the two successive subperiods. Extending this method to n {\displaystyle n} periods, assuming returns are reinvested, if the returns over n {\displaystyle n} successive time subperiods are R 1 , R 2 , R 3 , ⋯ , R n {\displaystyle R_{1},R_{2},R_{3},\cdots ,R_{n}} , then

3720-711: Is expected to conclude on July 15, 2015. A review of the regulation was published in the EU Official Journal on May 28, 2019. The review, known as EMIR Refit, was proposed by the European Commission to minimise the compliance burden on small financial and non-financial counterparties. Among other changes, the thresholds to be subject to the clearing obligations have been revised and an obligation for financial counterparties to report trades on behalf of non-financial counterparties has been introduced. European Union in Europe  (dark grey) The European Union ( EU )

3844-463: Is inconsistent with EU law. It is not possible to appeal against the decisions of national courts in the CJEU, but rather national courts refer questions of EU law to the CJEU. However, it is ultimately for the national court to apply the resulting interpretation to the facts of any given case. Although, only courts of final appeal are bound to refer a question of EU law when one is addressed. The treaties give

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3968-594: Is organised as a directorial system , where the executive power is jointly exercised by several people. The executive branch consists of the European Council and European Commission. The European Council sets the broad political direction of the Union. It convenes at least four times a year and comprises the president of the European Council (presently Charles Michel ), the president of the European Commission and one representative per member state (either its head of state or head of government ). The high representative of

4092-456: Is paid in 5 irregularly-timed installments of US$ 4,000, with no reinvestment, over a 5-year period, and with no information provided about the timing of the installments. The rate of return is 4,000 / 100,000 = 4% per year. Assuming returns are reinvested however, due to the effect of compounding , the relationship between a rate of return r {\displaystyle r} , and a return R {\displaystyle R} over

4216-428: Is the annualized logarithmic rate of return for a return R l o g {\displaystyle R_{\mathrm {log} }} , if t {\displaystyle t} is measured in years. For example, if the logarithmic return of a security per trading day is 0.14%, assuming 250 trading days in a year, then the annualized logarithmic rate of return is 0.14%/(1/250) = 0.14% x 250 = 35% When

4340-502: Is the final body to approve or reject the proposed membership of the commission, and can attempt motions of censure on the commission by appeal to the Court of Justice . The president of the European Parliament carries out the role of speaker in Parliament and represents it externally. The president and vice-presidents are elected by MEPs every two and a half years. The judicial branch of

4464-485: Is then able to recruit staff from among the pool of candidates selected by EPSO. On average, EPSO receives around 60,000–70,000 applications a year with around 1,500–2,000 candidates recruited by the European Union institutions. The European Ombudsman is the ombudsman branch of the European Union that holds the institutions, bodies and agencies of the EU to account, and promotes good administration. The Ombudsman helps people, businesses and organisations facing problems with

4588-648: The Bretton Woods System (1944). In 1943 at the Moscow Conference and Tehran Conference , plans to establish joint institutions for a post-war world and Europe increasingly became a part of the agenda. This led to a decision at the Yalta Conference in 1944 to form a European Advisory Commission , later replaced by the Council of Foreign Ministers and the Allied Control Council , following

4712-461: The Copenhagen criteria for candidate members to join the EU were agreed upon in June 1993. The expansion of the EU introduced a new level of complexity and discord. In 1995, Austria, Finland, and Sweden joined the EU. In 2002, euro banknotes and coins replaced national currencies in 12 of the member states. Since then, the eurozone has increased to encompass 20 countries. The euro currency became

4836-658: The Council of Europe , an international organisation independent of the EU and based in Strasbourg. The European Commission acts both as the EU's executive arm , responsible for the day-to-day running of the EU, and also the legislative initiator , with the sole power to propose laws for debate. The commission is 'guardian of the Treaties' and is responsible for their efficient operation and policing. It has 27 European commissioners for different areas of policy, one from each member state, though commissioners are bound to represent

4960-531: The Court of Justice of the European Union , the European Central Bank and the European Court of Auditors . Competence in scrutinising and amending legislation is shared between the Council of the European Union and the European Parliament, while executive tasks are performed by the European Commission and in a limited capacity by the European Council (not to be confused with the aforementioned Council of

5084-721: The European Parliamentary Union (EPU). Aristide Briand —who was Prime Minister of France , a follower of the Paneuropean Union, and Nobel Peace Prize laureate for the Locarno Treaties —delivered a widely recognized speech at the League of Nations in Geneva on 5 September 1929 for a federal Europe to secure Europe and settle the historic Franco-German enmity . With large-scale war being waged in Europe once again in

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5208-677: The European integration project or the construction of Europe ( French : la construction européenne ). The following timeline outlines the legal inception of the European Union (EU)—the principal framework for this unification. The EU inherited many of its present responsibilities from the European Communities (EC), which were founded in the 1950s in the spirit of the Schuman Declaration . The European Union operates through

5332-628: The Hertenstein Congress of the Union of European Federalists , one of the then founded and later constituting members of the European Movement . One month later, the French Union was installed by the new Fourth French Republic to direct the decolonization of its colonies so that they would become parts of a European community. By 1947 a growing rift between the western Allied Powers and

5456-466: The Lisbon Treaty entered into force and reformed many aspects of the EU. In particular, it changed the legal structure of the European Union, merging the EU three pillars system into a single legal entity provisioned with a legal personality , created a permanent president of the European Council , the first of which was Herman Van Rompuy , and strengthened the position of the high representative of

5580-576: The Marshall Plan , which led to the Soviets creating Comecon in response. The ensuing Hague Congress of May 1948 was a pivotal moment in European integration, as it led to the creation of the European Movement International , the College of Europe and most importantly to the foundation of the Council of Europe on 5 May 1949 (which is now Europe Day ). The Council of Europe was one of

5704-605: The Soviet Union became evident as a result of the rigged 1947 Polish legislative election , which constituted an open breach of the Yalta Agreement . March of that year saw two important developments. First was the signing of the Treaty of Dunkirk between France and the United Kingdom . The treaty assured mutual assistance in the event of future military aggression against either nation. Though it officially named Germany as

5828-638: The cumulative return or overall return R {\displaystyle R} over the overall time period using the time-weighted method is the result of compounding all of the growth factors together: If the returns are logarithmic returns, however, the logarithmic return R l o g {\displaystyle R_{\mathrm {log} }} over the overall time period is: This formula applies with an assumption of reinvestment of returns and it means that successive logarithmic returns can be summed, i.e. that logarithmic returns are additive. In cases where there are inflows and outflows,

5952-404: The holding period return , can be calculated over a single period. The single period may last any length of time. The overall period may, however, instead be divided into contiguous subperiods. This means that there is more than one time period, each sub-period beginning at the point in time where the previous one ended. In such a case, where there are multiple contiguous subperiods, the return or

6076-617: The monetary branch of the European Union, the prime component of the Eurosystem and the European System of Central Banks. It is one of the world's most important central banks . The ECB Governing Council makes monetary policy for the Eurozone and the European Union, administers the foreign exchange reserves of EU member states, engages in foreign exchange operations, and defines the intermediate monetary objectives and key interest rate of

6200-719: The world population in 2020, EU member states generated a nominal gross domestic product (GDP) of around US$ 16.6   trillion in 2022, constituting approximately one sixth of global nominal GDP . Additionally, all EU states except Bulgaria have a very high Human Development Index according to the United Nations Development Programme . Its cornerstone, the Customs Union , paved the way to establishing an internal single market based on standardised legal framework and legislation that applies in all member states in those matters, and only those matters, where

6324-640: The 1930s and becoming World War II , the question of what to fight against and what for, had to be agreed on. A first agreement was the Declaration of St James's Palace of 1941, when Europe's resistance gathered in London. This was expanded on by the 1941 Atlantic Charter , establishing the Allies and their common goals, inciting a new wave of global international institutions like the United Nations ( founded 1945 ) or

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6448-600: The 20 EU member states that have fully implemented the economic and monetary union and use the euro currency . Through the Common Foreign and Security Policy , the union has developed a role in external relations and defence . It maintains permanent diplomatic missions throughout the world and represents itself at the United Nations , the World Trade Organization , the G7 and the G20 . Due to its global influence,

6572-471: The CJEU the power for consistent application of EU law across the EU as a whole. The court also acts as an administrative and constitutional court between the other EU institutions and the Member States and can annul or invalidate unlawful acts of EU institutions, bodies, offices and agencies. The General Court is a constituent court of the European Union. It hears actions taken against the institutions of

6696-417: The Council of the European Union and the "Council of Ministers", its former title), forms one half of the EU's legislature. It consists of a representative from each member state's government and meets in different compositions depending on the policy area being addressed . Notwithstanding its different configurations, it is considered to be one single body. In addition to the legislative functions, members of

6820-547: The ECB and the national central banks (NCBs) of all 27 member states of the European Union. The ESCB is not the monetary authority of the eurozone, because not all EU member states have joined the euro. The ESCB's objective is price stability throughout the European Union. Secondarily, the ESCB's goal is to improve monetary and financial cooperation between the Eurosystem and member states outside

6944-401: The EU administration by investigating complaints, as well as by proactively looking into broader systemic issues. The current Ombudsman is Emily O'Reilly . The European Public Prosecutor's Office (EPPO) is the prosecutory branch of the union with juridical personality, established under the Treaty of Lisbon between 23 of the 27 states of the EU following the method of enhanced cooperation. It

7068-590: The EU level by special interest groups is regulated to try to balance the aspirations of private initiatives with public interest decision-making process. The European Union had an agreed budget of €170.6  billion in 2022. The EU had a long-term budget of €1,082.5 billion for the period 2014–2020, representing 1.02% of the EU-28's GNI. In 1960, the budget of the European Community was 0.03 per cent of GDP. Of this, €54bn subsidised agriculture enterprise , €42bn

7192-420: The EU, which together with the Council of the European Union is tasked with amending and approving the European Commission's proposals. 705 members of the European Parliament (MEPs) are directly elected by EU citizens every five years on the basis of proportional representation . MEPs are elected on a national basis and they sit according to political groups rather than their nationality. Each country has

7316-436: The EU. The ECB Executive Board enforces the policies and decisions of the Governing Council, and may direct the national central banks when doing so. The ECB has the exclusive right to authorise the issuance of euro banknotes . Member states can issue euro coins , but the volume must be approved by the ECB beforehand. The bank also operates the TARGET2 payments system. The European System of Central Banks (ESCB) consists of

7440-400: The European Community and the EU, and then made amendments to those founding treaties. These are power-giving treaties which set broad policy goals and establish institutions with the necessary legal powers to implement those goals. These legal powers include the ability to enact legislation which can directly affect all member states and their inhabitants. The EU has legal personality , with

7564-420: The European Council. The other 25 commissioners are subsequently appointed by the Council of the European Union in agreement with the nominated president. The 27 commissioners as a single body are subject to approval (or otherwise) by a vote of the European Parliament . All commissioners are first nominated by the government of the respective member state. The council, as it is now simply called (also called

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7688-444: The European Recovery Program called Next Generation EU (NGEU). On 24 February 2022, after massing on the borders of Ukraine, the Russian Armed Forces undertook an attempt for a full-scale invasion of Ukraine. The European Union imposed heavy sanctions on Russia and agreed on a pooled military aid package to Ukraine for lethal weapons funded via the European Peace Facility off-budget instrument. Next Generation EU ( NGEU )

7812-432: The European Treaties but were developed by the Court of Justice itself over the 1960s, apparently under the influence of its then most influential judge, Frenchman Robert Lecourt . The question whether the secondary law enacted by the EU has a comparable status in relation to national legislation, has been a matter of debate among legal scholars. The European Union is based on a series of treaties . These first established

7936-402: The European Union by individuals and member states, although certain matters are reserved for the Court of Justice. Decisions of the General Court can be appealed to the Court of Justice, but only on a point of law. Prior to the coming into force of the Lisbon Treaty on 1 December 2009, it was known as the Court of First Instance. The European Central Bank (ECB) is one of the institutions of

8060-417: The European Union has been described by some scholars as an emerging superpower . The EU was established, along with its citizenship , when the Maastricht Treaty came into force in 1993, and was incorporated as an international legal juridical person upon entry into force of the Treaty of Lisbon in 2009 . Its beginnings can be traced to the Inner Six states (Belgium, France, Italy, Luxembourg,

8184-402: The European Union understood that coal and steel were the two industries essential for waging war, and believed that by tying their national industries together, a future war between their nations became much less likely. In parallel with Schuman, the Pleven Plan of 1951 tried but failed to tie the institutions of the developing European community under the European Political Community , which

8308-410: The European Union ). It is more integrated than a traditional confederation of states because the general level of government widely employs qualified majority voting in some decision-making among the member states, rather than relying exclusively on unanimity. It is less integrated than a federal state because it is not a state in its own right: sovereignty continues to flow 'from the bottom up', from

8432-419: The European Union is formally called the Court of Justice of the European Union (CJEU) and consists of two courts: the Court of Justice and the General Court . The Court of Justice is the supreme court of the European Union in matters of European Union law . As a part of the CJEU, it is tasked with interpreting EU law and ensuring its uniform application across all EU member states under Article 263 of

8556-417: The European Union). The monetary policy of the eurozone is determined by the European Central Bank. The interpretation and the application of EU law and the treaties are ensured by the Court of Justice of the European Union. The EU budget is scrutinised by the European Court of Auditors. There are also a number of ancillary bodies which advise the EU or operate in a specific area. The Union's executive branch

8680-427: The Eurozone countries , a surge in asylum seekers in 2015 , and the United Kingdom's withdrawal from the EU . A referendum in the UK on its membership of the European Union was held in 2016, with 51.9 per cent of participants voting to leave. The UK formally notified the European Council of its decision to leave on 29 March 2017, initiating the formal withdrawal procedure for leaving the EU ; following extensions to

8804-406: The German surrender and the Potsdam Agreement in 1945. By the end of the war, European integration became seen as an antidote to the extreme nationalism that had caused the war. On 19 September 1946, in a much recognized speech, Winston Churchill , speaking at the University of Zürich , reiterated his calls since 1930 for a "European Union" and "Council of Europe", coincidentally parallel to

8928-763: The Netherlands, and West Germany ) at the start of modern European integration in 1948, and to the Western Union , the International Authority for the Ruhr , the European Coal and Steel Community , the European Economic Community and the European Atomic Energy Community , which were established by treaties. These increasingly amalgamated bodies grew, with their legal successor the EU, both in size through

9052-573: The OTC derivatives market . It was also designed as a preventative measure to avoid fallout during possible future financial crises similar to the collapse that followed the Lehman Brothers bankruptcy in 2008. It establishes common rules for central counterparties, which interpose themselves between involved parties in a contract to serve as the focal point of each trade, and trade repositories, which collect and maintain all records of trades. EMIR requires

9176-473: The OTC market. In October 2013, in response to the reported difficulties, ESMA announced that trade repositories should send back incomplete reports to counterparties, asking for their rectification, instead of trying to reconcile them. In November 2013, ESMA published the final draft on EMIR's technical standards in regards to non-EU counterparties. In January 2014, mandatory transaction reporting for OTC derivatives began under EMIR. On October 1, 2014, ESMA began

9300-535: The Treaty of the Functioning of the European Union (TFEU). The Court was established in 1952, and is based in Luxembourg . It is composed of one judge per member state – currently 27 – although it normally hears cases in panels of three, five or fifteen judges. The Court has been led by president Koen Lenaerts since 2015. The CJEU is the highest court of the European Union in matters of Union law . Its case-law provides that EU law has supremacy over any national law that

9424-430: The Union as a whole, though the exact delimitation has on occasions become a subject of scholarly or legal disputes. In certain fields, members have awarded exclusive competence and exclusive mandate to the Union. These are areas in which member states have entirely renounced their own capacity to enact legislation. In other areas, the EU and its member states share the competence to legislate. While both can legislate,

9548-609: The Union to be ready for the new members. In May 2024, concerns rise, that the outcome of the elections in June, can undermine some of the crucial policies of the EU in the domain of environment, diplomacy, economy . The war in Ukraine by creating inflation, lowering life level created a possibility of strong changes in the 2024 elections. Since the end of World War II , sovereign European countries have entered into treaties and thereby co-operated and harmonised policies (or pooled sovereignty ) in an increasing number of areas, in

9672-648: The Western Allies in 1949 to regulate the coal and steel industries of the Ruhr area in West Germany. Backed by the Marshall Plan with large funds coming from the United States since 1948, the ECSC became a milestone organisation, enabling European economic development and integration and being the origin of the main institutions of the EU such as the European Commission and Parliament . Founding fathers of

9796-485: The accessions of a further 22 states from 1973 to 2013, and in power through acquisitions of policy areas. In 2012, the EU was awarded the Nobel Peace Prize . The United Kingdom became the only member state to leave the EU , in 2020; ten countries are aspiring or negotiating to join it . Internationalism and visions of European unity had existed since well before the 19th century, but gained particularly as

9920-561: The beginning of the Cold War . The year 1948 marked the beginning of the institutionalised modern European integration . In March 1948 the Treaty of Brussels was signed, establishing the Western Union (WU), followed by the International Authority for the Ruhr . Furthermore, the Organisation for European Economic Co-operation (OEEC), the predecessor of the OECD, was also founded in 1948 to manage

10044-640: The close the next day, then the logarithmic return is: ln(3.575/3.570) = 0.0014, or 0.14%. Under an assumption of reinvestment, the relationship between a logarithmic return R l o g {\displaystyle R_{\mathrm {log} }} and a logarithmic rate of return r l o g {\displaystyle r_{\mathrm {log} }} over a period of time of length t {\displaystyle t} is: so r l o g = R l o g t {\displaystyle r_{\mathrm {log} }={\frac {R_{\mathrm {log} }}{t}}}

10168-416: The council also have executive responsibilities, such as the development of a Common Foreign and Security Policy and the coordination of broad economic policies within the Union. The Presidency of the council rotates between member states, with each holding it for six months. Beginning on 1 July 2024, the position is held by Hungary. The European Parliament is one of three legislative institutions of

10292-711: The counter derivative contracts involving third country entities. The risk mitigation standards outlined in EMIR's Article 11 impose risk management regulation on bilateral derivatives, as these derivatives are not appropriate for standard central counterparty clearing. EMIR also advises against front-loading over the counter derivatives, or applying any associated fees to sellers alone, as this practice typically increases systemic risk. Other risk mitigation techniques as defined by EMIR include timely submission of reports and confirmations of adherence to regulation by all counterparties, and open reconciliation and compression of portfolios between involved parties. Other techniques include

10416-542: The countries of Central and Eastern Europe . Assessing the progress of European integration the Messina Conference was held in 1955, ordering the Spaak report , which in 1956 recommended the next significant steps of European integration. In 1957, Belgium , France , Italy , Luxembourg , the Netherlands , and West Germany signed the Treaty of Rome , which created the European Economic Community (EEC) and established

10540-485: The currency of measurement. For example, suppose a US$ 10,000 (US dollar) cash deposit earns 2% interest over a year, so its value at the end of the year is US$ 10,200 including interest. The return over the year is 2%, measured in USD. Let us suppose also that the exchange rate to Japanese yen at the start of the year is 120 yen per USD, and 132 yen per USD at the end of the year. The value in yen of one USD has increased by 10% over

10664-421: The end of the first period. If the value of the investment at the end of the second period is C {\displaystyle C} , the holding period return in the second period is: Multiplying together the growth factors in each period 1 + R 1 {\displaystyle 1+R_{1}} and 1 + R 2 {\displaystyle 1+R_{2}} : This method

10788-528: The ensuing détente led to establishment of a first truly pan-European body, the Conference on Security and Co-operation in Europe (CSCE), predecessor of the modern Organization for Security and Co-operation in Europe (OSCE). In 1979, the first direct elections to the European Parliament were held. Greece joined in 1981. In 1985, Greenland left the Communities , following a dispute over fishing rights. During

10912-451: The entire cabinet, the final say in accepting or rejecting a candidate submitted for a given portfolio by a member state, and oversees the commission's permanent civil service. After the President, the most prominent commissioner is the high representative of the union for foreign affairs and security policy, who is ex-officio a vice-president of the European Commission and is also chosen by

11036-481: The eurozone. The European Court of Auditors (ECA) is the auditory branch of the European Union. It was established in 1975 in Luxembourg in order to improve EU financial management. It has 27 members (1 from each EU member-state) supported by approximately 800 civil servants. The European Personnel Selection Office (EPSO) is the EU's civil service recruitment body and operates its selection of candidates via generalist and specialist competitions. Each institution

11160-481: The event that the block trade is not allocated on the trade date, the block itself must be reported with the fund manager as counterparty. One of EMIR's central purposes is to manage and avoid systemic risk . EMIR, and other legislation like it, aim to reduce systemic risk in part by increasing regulations on clearing and trading, which decreases returns and industry efforts. Under EMIR, the risk mitigation regime applies to contracts involving both EU countries and over

11284-464: The extension to 2018. As of May 5, 2015, ESMA has been discussing a fourth consultation, this time revisiting the clearing obligation under EMIR. The 2013 report on clearing indicated a need for further analysis of the classes of OTC interest rate derivatives denominated in other currencies than the ones included in the first report, and the 2015 consultation is expected to present new analysis and invite discussion on these other currencies. The consultation

11408-463: The first institutions to bring the sovereign states of (then only Western) Europe together, raising great hopes and fevered debates in the following two years for further European integration. It has since been a broad forum to further cooperation and shared issues, achieving for example the European Convention on Human Rights in 1950. Essential for the actual birth of the institutions of the EU

11532-423: The formula applies by definition for time-weighted returns, but not in general for money-weighted returns (combining the logarithms of the growth factors based on money-weighted returns over successive periods does not generally conform to this formula). The arithmetic average rate of return over n {\displaystyle n} time periods of equal length is defined as: This formula can be used on

11656-408: The holding period return R 1 {\displaystyle R_{1}} in the first period is: If the gains and losses B − A {\displaystyle B-A} are reinvested, i.e. they are not withdrawn or paid out, then the value of the investment at the start of the second period is B {\displaystyle B} , i.e. the same as the value at

11780-419: The holding period return over the overall period can be calculated by combining the returns within each of the subperiods. The direct method to calculate the return or the holding period return R {\displaystyle R} over a single period of any length of time is: where: For example, if someone purchases 100 shares at a starting price of 10, the starting value is 100 x 10 = 1,000. If

11904-433: The increase in size of an asset or liability or short position. A negative initial value usually occurs for a liability or short position. If the initial value is negative, and the final value is more negative, then the return will be positive. In such a case, the positive return represents a loss rather than a profit. If the initial value is zero, then no return can be calculated. The return, or rate of return, depends on

12028-487: The instrument is worth € 750 billion . NGEU will operate from 2021 to 2026, and will be tied to the regular 2021–2027 budget of the EU's Multiannual Financial Framework (MFF). The comprehensive NGEU and MFF packages are projected to reach €1824.3 billion. Preparing the Union for a new great enlargement is a political priority for the Union, with the goal of achieving over 35 member states by 2030. Institutional and budgetary reforms are being discussed in order to

12152-425: The interests of the EU as a whole rather than their home state. The leader of the 27 is the president of the European Commission (presently Ursula von der Leyen for 2019–2024, reelected for the 2024-2029 term), proposed by the European Council , following and taking into account the result of the European elections, and is then elected by the European Parliament. The President retains, as the leader responsible for

12276-477: The length of the period t {\displaystyle t} is measured in years and the rate of return r {\displaystyle r} is per year. According to the CFA Institute's Global Investment Performance Standards (GIPS), This is because an annualized rate of return over a period of less than one year is statistically unlikely to be indicative of the annualized rate of return over

12400-497: The long run, where there is risk involved. Annualizing a return over a period of less than one year might be interpreted as suggesting that the rest of the year is most likely to have the same rate of return, effectively projecting that rate of return over the whole year. Note that this does not apply to interest rates or yields where there is no significant risk involved. It is common practice to quote an annualized rate of return for borrowing or lending money for periods shorter than

12524-486: The member states can only legislate to the extent to which the EU has not. In other policy areas, the EU can only co-ordinate, support and supplement member state action but cannot enact legislation with the aim of harmonising national laws. That a particular policy area falls into a certain category of competence is not necessarily indicative of what legislative procedure is used for enacting legislation within that policy area. Different legislative procedures are used within

12648-424: The period. The deposit is worth 1.2 million yen at the start of the year, and 10,200 x 132 = 1,346,400 yen at the end of the year. The return on the deposit over the year in yen terms is therefore: This is the rate of return experienced either by an investor who starts with yen, converts to dollars, invests in the USD deposit, and converts the eventual proceeds back to yen; or for any investor, who wishes to measure

12772-561: The process, the UK left the European Union on 31 January 2020, though most areas of EU law continued to apply to the UK for a transition period which lasted until 31 December 2020. The early 2020s saw Denmark abolishing one of its three opt-outs and Croatia adopting the Euro . After the economic crisis caused by the COVID-19 pandemic , the EU leaders agreed for the first time to create common debt to finance

12896-520: The regulations being in effect, and many experienced delays in reporting. In July 2013, the European Commission adopted a Delegated EMIR Regulation to include the central banks and debt management offices in Japan and the United States to be exempt from EMIR. On July 12, 2013, ESMA published a discussion paper specifically describing the clearing obligation as defined by EMIR. The discussion was closed on September 16, 2013. In August 2013, UK Parliament reviewed

13020-433: The reporting of all derivatives, whether OTC or exchange traded, to a trade repository. EMIR covers entities that qualify for derivative contracts in regards to interest rate , equity , foreign exchange , or credit and commodity derivatives . It also outlines three sets of obligations, including the clearing, reporting and risk mitigation of applicable products. EMIR's set of obligations were designed to take effect on

13144-530: The return in Japanese yen terms, for comparison purposes. Without any reinvestment, a return R {\displaystyle R} over a period of time t {\displaystyle t} corresponds to a rate of return r {\displaystyle r} : For example, let us suppose that US$ 20,000 is returned on an initial investment of US$ 100,000. This is a return of US$ 20,000 divided by US$ 100,000, which equals 20 percent. The US$ 20,000

13268-406: The return is calculated over a series of sub-periods of time, the return in each sub-period is based on the investment value at the beginning of the sub-period. Suppose the value of the investment at the beginning is A {\displaystyle A} , and at the end of the first period is B {\displaystyle B} . If there are no inflows or outflows during the period,

13392-476: The right to sign agreements and international treaties. Rate of return In finance , return is a profit on an investment . It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment over a specified time period, such as interest payments, coupons , cash dividends and stock dividends . It may be measured either in absolute terms (e.g., dollars) or as

13516-408: The same category of competence, and even with the same policy area. The distribution of competences in various policy areas between member states and the union is divided into the following three categories: The European Union has seven principal decision-making bodies, its institutions : the European Parliament , the European Council , the Council of the European Union , the European Commission ,

13640-589: The same year, the Schengen Agreement paved the way for the creation of open borders without passport controls between most member states and some non-member states. In 1986, the Single European Act was signed. Portugal and Spain joined in 1986. In 1990, after the fall of the Eastern Bloc , the former East Germany became part of the communities as part of a reunified Germany . The European Union

13764-533: The second-largest reserve currency in the world. In 2004, the EU saw its biggest enlargement to date when Cyprus, the Czech Republic, Estonia , Hungary , Latvia , Lithuania , Malta , Poland , Slovakia , and Slovenia joined the union. In 2007, Bulgaria and Romania became EU members. Later that year, Slovenia adopted the euro, followed by Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015. On 1 December 2009,

13888-449: The several peoples of the separate member states, rather than from a single undifferentiated whole. This is reflected in the fact that the member states remain the 'masters of the Treaties', retaining control over the allocation of competences to the union through constitutional change (thus retaining so-called Kompetenz-kompetenz ); in that they retain control of the use of armed force; they retain control of taxation; and in that they retain

14012-427: The shareholder then collects 0.50 per share in cash dividends, and the ending share price is 9.80, then at the end the shareholder has 100 x 0.50 = 50 in cash, plus 100 x 9.80 = 980 in shares, totalling a final value of 1,030. The change in value is 1,030 − 1,000 = 30, so the return is 30 1 , 000 = 3 % {\displaystyle {\frac {30}{1,000}}=3\%} . Return measures

14136-466: The states have agreed to act as one. EU policies aim to ensure the free movement of people, goods, services and capital within the internal market; enact legislation in justice and home affairs; and maintain common policies on trade , agriculture , fisheries and regional development . Passport controls have been abolished for travel within the Schengen Area . The eurozone is a group composed of

14260-465: The technical standards of reporting under EMIR between November 10, 2014 and February 3, 2015. Mandatory reporting for exchange-traded derivatives began in January 2015, and in February of the same year, a European Commission report recommended an extension to the exemption until August 2017. As of March 2015, EMIR's regulations are under analysis in regards to pension funds, with the possibility of extending

14384-484: The three communities, which were collectively referred to as the European Communities . Jean Rey presided over the first merged commission ( Rey Commission ). In 1973, the communities were enlarged to include Denmark (including Greenland), Ireland, and the United Kingdom . Norway had negotiated to join at the same time, but Norwegian voters rejected membership in a referendum . The Ostpolitik and

14508-487: The union for foreign affairs and security policy (presently Josep Borrell ) also takes part in its meetings. Described by some as the union's "supreme political leadership", it is actively involved in the negotiation of treaty changes and defines the EU's policy agenda and strategies. Its leadership role involves solving disputes between member states and the institutions, and to resolving any political crises or disagreements over controversial issues and policies. It acts as

14632-465: The union for foreign affairs and security policy . In 2012, the EU received the Nobel Peace Prize for having "contributed to the advancement of peace and reconciliation, democracy, and human rights in Europe". In 2013, Croatia became the 28th EU member. From the beginning of the 2010s, the cohesion of the European Union has been tested by several issues, including a debt crisis in some of

14756-408: The unique trade identifier, which are generated based on the report's LEI. Block trades , which are large-scale transactions of shares, and any subsequent allocations must be reported to the fund manager, but block trades concluded by a TR are not subject to the obligation. If the block trade is allocated to the manager's individual funds on the trade date, only the allocations need to be reported. In

14880-491: Was formally established when the Maastricht Treaty —whose main architects were Horst Köhler , Helmut Kohl and François Mitterrand —came into force on 1 November 1993. The treaty also gave the name European Community to the EEC, even if it was referred to as such before the treaty. With further enlargement planned to include the former communist states of Central and Eastern Europe, as well as Cyprus and Malta ,

15004-467: Was in turn reformed in 1961 into the Organisation for Economic Co-operation and Development (OECD) and its membership was extended to states outside of Europe, the United States and Canada. During the 1960s, tensions began to show, with France seeking to limit supranational power. Nevertheless, in 1965 an agreement was reached, and on 1 July 1967 the Merger Treaty created a single set of institutions for

15128-469: Was spent on transport , building and the environment, €16bn on education and research , €13bn on welfare, €20bn on foreign and defence policy, €2bn in finance , €2bn in energy , €1.5bn in communications, and €13bn in administration. In November 2020, two members of the union, Hungary and Poland, blocked approval to the EU's budget at a meeting in the Committee of Permanent Representatives (Coreper), citing

15252-454: Was the Schuman Declaration on 9 May 1950 (the day after the fifth Victory in Europe Day ) and the decision by six nations (France, Belgium, Netherlands, Luxembourg, West Germany and Italy) to follow Schuman and draft the Treaty of Paris . This treaty was created in 1952 the European Coal and Steel Community (ECSC), which was built on the International Authority for the Ruhr , installed by

15376-752: Was to include the also proposed European Defence Community , an alternative to West Germany joining NATO which was established in 1949 under the Truman Doctrine . In 1954 the Modified Brussels Treaty transformed the Western Union into the Western European Union (WEU). West Germany eventually joined both the WEU and NATO in 1955, prompting the Soviet Union to form the Warsaw Pact in 1955 as an institutional framework for its military domination in

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