The European Securities and Markets Authority (ESMA) has published its Final Report detailing the regulatory technical standards (RTS) for the Active Account Requirement (AAR) under the revised European Market Infrastructure Regulation (EMIR 3). This milestone aims to enhance financial stability in the EU by reducing reliance on systemically important third-country central counterparties (CCPs).

The new standards require certain financial and non-financial counterparties with significant exposures to non-EU CCPs to maintain operational and representative active accounts at EU-based CCPs. The AAR applies to OTC interest rate derivatives in euro and Polish zloty, as well as euro-denominated short-term interest rate derivatives. Entities subject to the AAR must ensure their EU CCP accounts are fully functional, with robust legal documentation, IT connectivity, and internal processes, and must annually stress-test their operational capacity. Larger counterparties are obliged to clear a minimum number of trades in specified derivative classes at EU CCPs, ensuring this activity is representative of their overall clearing business. Exemptions are provided for counterparties clearing at least 85% of relevant derivatives at EU CCPs or with notional clearing volumes below EUR 6 billion.

Reporting requirements have been streamlined, with covered entities submitting semi-annual aggregate data on their activities, exposures, and compliance. The final RTS reflects extensive stakeholder feedback, simplifying compliance and aligning stress-testing frequency. ESMA will submit the RTS to the European Commission, with the first reporting expected six months after adoption. A review of the regime’s effectiveness is planned for June 2026.

The entire report is available here – ESMA publishes the final report on the active account requirement under EMIR 3