Ahead of the 26th EU-Japan Summit, taking place in Brussels this afternoon, the European Commission has today determined certain rules of Japan to be equivalent to the European Market Infrastructure Regulation (EMIR) in terms of the legal, supervisory and enforcement arrangements for non-centrally cleared over-the-counter (OTC) derivatives transactions. In particular, the decision concludes that Japan Financial Services Agency (JFSA) rules on valuation and dispute resolution for OTC derivative contracts not cleared by a central counterparty are equivalent to EMIR. It also determines that JFSA rules on obligations on the exchange of collateral (‘margins’) between counterparties are equivalent to EU rules. The European Commission’s decision will alleviate the regulatory burden for EU and Japanese companies. It will allow market participants to comply with only one set of rules and to avoid duplicative or conflicting rules. Today’s decision takes the form of an implementing act and will enter into force on the twentieth day following its publication in the Official Journal of the EU.