The European Securities and Markets Authority (ESMA) has published its final report on the Regulatory Technical Standards (RTS) for the Active Account Requirement (AAR), a central pillar of the EMIR 3 reform package. The measure is designed to reduce the EU’s reliance on systemically important third-country central counterparties (Tier 2 CCPs) by requiring market participants to hold and use an active account at an EU-based CCP for certain derivative transactions. With this final version, ESMA aims to strengthen the EU clearing ecosystem while responding to industry feedback on implementation challenges.
Following feedback from its public consultation, ESMA made a series of adjustments aimed at easing compliance without weakening the core objectives. The regulator streamlined operational conditions and reduced the complexity of required stress testing. The final report also introduces a simplified framework for reporting risks and activities, alongside clarifications on the representativeness obligation, intended to ensure that the trades cleared through the EU account are a meaningful share of a participant’s overall activity.
Feasibility and flexibility
ESMA’s final version allows some flexibility in how the AAR can be fulfilled, including staggered implementation timelines and more workable thresholds. Notably, it reaffirms the requirement for EU market participants to maintain an “active” account at an EU CCP for specific asset classes, but softens the surrounding obligations to improve feasibility. This includes a reduced set of qualitative indicators for what constitutes “active” use and clearer guidance on supervisory reporting.
Next steps
The finalised RTS has now been submitted to the European Commission for endorsement. Once adopted, it will be subject to review by the European Parliament and the Council before entering into force.
