The European Securities and Markets Authority (ESMA) has opened a consultation on the clearing thresholds under the European Market Infrastructure Regulation review (EMIR 3). The consultation follows ESMA’s mandate to develop Regulatory Technical Standards (RTS) in this area.
The paper sets out proposals for a revised set of clearing thresholds. These thresholds are based on activity in over-the-counter (OTC) derivatives that are not cleared through an authorised or recognised central counterparty (CCP). The revised methodology aims to assess the risk associated with uncleared OTC derivatives to determine whether entities should be subject to the clearing obligation.
According to ESMA, the new approach seeks to ensure a proportionate clearing regime, focusing on counterparties with significant OTC derivatives activity and large uncleared positions.
Scope of the consultation
Alongside the revised thresholds, the consultation also covers considerations for hedging exemptions for non-financial counterparties. In addition, it includes a proposal for a trigger mechanism that would allow for the review of the clearing thresholds over time.
The consultation is open until 16 June 2025. ESMA intends to publish a final report and submit the draft technical standards to the European Commission by the end of the year.
