The European Securities and Markets Authority (ESMA) is seeking input on new clearing thresholds under the European Market Infrastructure Regulation (EMIR 3) review. The consultation paper covers proposals for revised clearing thresholds, hedging exemptions for non-financial counterparties, and a trigger mechanism for reviewing the thresholds. The revised methodology focuses on over-the-counter (OTC) derivatives not cleared at an authorized or recognized central counterparty (CCP). The approach assesses the risk associated with uncleared activity to determine if entities should be mandated to clear their OTC derivatives. The goal is to ensure a proportionate clearing obligation regime, focusing on entities with significant OTC derivatives activity and large uncleared positions. The consultation will remain open until June 16, 2025. ESMA will publish a final report and submit the draft technical standards to the European Commission by the end of the year based on the feedback received. The consultation paper is part of ESMA's mandate to develop Regulatory Technical Standards (RTS) on clearing thresholds. The new methodology aims to ensure a more effective clearing obligation regime. ESMA is seeking input from stakeholders to inform its development of the new clearing thresholds regime.