Catch me if you can: Emir reporting crackdown looks tricky

If any of the firms that are subject to Europe’s derivatives reporting regime fail to comply, they will be fined – in theory, at least. In practice, most do not believe the regulators can identify offending parties, let alone punish them. By Fiona Maxwell

Laughter is not the usual response to questions about the enforcement of new regulations, but it's surprisingly common when asking treasurers and lawyers whether they fear being fined for breaching Europe's seven-month-old derivatives reporting rules. Three sources for this article chuckle throughout their interviews – on and off, admittedly. One lawyer keeps a straight face until asked how authorities will track down offenders, and then dissolves. So, what's the joke?

"Just the idea of it is