The European Securities and Markets Authority (ESMA) has published a final report detailing the draft regulatory technical standards (RTS) for the new and revised clearing thresholds (CTs) under the European Market Infrastructure Regulation (EMIR 3).
This final report follows the consultation paper published by ESMA in April 2025 where a proposal was made to modify the regime for CTs. Under the new framework, the positions’ calculation methodology is based mainly on the level of over-the-counter (OTC) uncleared transactions. ESMA states that the change in methodology “aims at better recognising the benefits of clearing”.
The new regime puts ESMA under a twofold mandate: to specify the values of the CTs for aggregate positions and uncleared positions, as well as to specify the criteria for establishing which OTC derivative contracts are objectively measurable as reducing risks.
Nice and simple
ESMA states that the proposed thresholds will “ensure continuity in the coverage of systemic risk in over‑the‑counter (OTC) derivative markets while avoiding unnecessary complexity and additional compliance burdens for market participants”.
To reduce complexity, ESMA has retained five CT categories, without additional categories or more granular thresholds. Counterparties are allowed to apply the new CTs during their usual assessment window or earlier to benefit sooner from the new regime. The mechanism triggering the review of the CT will be given enhanced stability and visibility.
A proposal to increase the thresholds in the commodity, interest rate, and credit derivatives asset classes has been added to reflect recent price developments.
Entities active in OTC derivative markets and exceeding one or more CTs are subject to additional requirements, such as the clearing obligation.
