The European Securities and Markets Authority (ESMA) has published a Consultation Paper on the conditions of the Active Account Requirement (AAR) under EMIR 3, a new regulation for EU counterparties in certain derivatives.The AAR requires EU counterparties to hold an active account at a Central Counterparty (CCP) authorized in the EU.ESMA seeks stakeholder input on key aspects of the AAR, including operational conditions, representativeness obligations, and reporting requirements.The three operational conditions aim to ensure the clearing account is active and functional, including stress-testing.The representativeness obligation applies to highly active counterparties, requiring their clearing activity to be representative of their overall derivatives transactions.Reporting requirements will assess compliance with the AAR.ESMA will consider feedback by January 27, 2025, and aims to submit the final draft RTS to the European Commission within six months of EMIR 3's entry into force.ESMA will hold a public hearing on January 20, 2025, to discuss the consultation.The consultation aims to clarify the conditions of the AAR and ensure effective implementation and supervision.Stakeholder feedback will help shape the final RTS on the AAR under EMIR 3.