ESMA publishes the final repor... Note

ESMA publishes the final report on the active account requirement under EMIR 3

ESMA released its final report detailing the active account requirement (AAR) under EMIR 3. This report specifies the conditions for meeting the AAR, a crucial part of EMIR 3. The AAR aims to bolster the resilience of EU clearing by obliging EU market participants to use EU central counterparties (CCPs). This reduces exposure to significant third-country CCPs, known as Tier 2 CCPs. ESMA's report streamlines operational conditions and stress-testing based on public consultation feedback. It simplifies reporting requirements related to risks and activities, representativeness, and operational condition fulfillment. The public consultation gathered input from CCPs, clearing members, and market participants. The final report follows ESMA's initial proposal. The RTS will be submitted to the European Commission for endorsement. Subsequently, the European Parliament and the Council will review the RTS.