On May 4, 2017, the EU Commission adopted proposals to amend the current European Market Infrastructure Regulation (“EMIR”). The proposals contain a number of possible changes, but among them is a proposed change to the definition “financial counterparty” to include an Alternative Investment Fund (“AIF”), whether established in the EU or outside the EU, even if its manager is not authorized under the Alternative Investment Fund Managers Directive (“AIFMD”) and even if it has never been marketed in the EU. Among other things, this could mean that an non-EU AIF managed by a non-EU manager that is a counterparty of an EU financial institution would effectively be subject to the EU rules, including those that require margin and central clearing for certain derivatives. It is not entirely clear yet if the EU could enforce these rules on non-EU AIFs. The proposals will now need to be considered by the EU Parliament and Council.