The sweeping reforms of the European Markets Infrastructure Regulation (EMIR) legislation are the result of the crucial Group of 20 (G20) economic summit in Pittsburgh, Pa. in September 2009 amid the aftermath of the Great Recession. World leaders came to an agreement that over-the-counter (OTC)
derivative instruments were a key factor in the financial crisis.
The G20 nations concurred that they had to lower risk and promote transparency into the OTC trading process. The leaders also stipulated that more standardization was needed for derivative contracts and that they should be traded via venues such as exchanges or electronic trading platforms. If contracts cannot be executed via such methods, then they should be cleared.