The European Securities and Markets Authority seeks feedback from financial market participants about the Active Account Requirement introduced in EMIR 3.0 with a view to improving EU clearing practices away from third-country central counterparties.
ESMA has announced its consultation on the Active Account Requirement established under EMIR 3.0 and invites input from stakeholders. This is part of the efforts that ESMA makes to strengthen the financial infrastructure of the EU by stimulating more clearing activity through its CCPs based in the EU.
The AAR requires financial and non-financial counterparties under the clearing obligation to maintain an active account with an EU-authorized CCP for specific derivatives transactions, mainly in euros and Polish zloty. The key purpose is to reduce third-country CCPs’ reliance on the EU while enhancing financial stability within the Union.
ESMA now invites the market participants to provide insights about the practical implementation of the AAR, reflecting on operational challenges, costs, and overall impact on market dynamics. Stakeholders are requested to send their input by the end date cited for the development of a robust regulatory framework that is in line with the EMIR 3.0 goals.
This initiative reflects the EU’s broader strategy to strengthen its financial markets infrastructure and ensure that critical clearing services are conducted within its jurisdiction, mitigating systemic risks associated with external dependencies.
The consultation process is open to market participants and should be engaged by them to ensure that all the involved views are represented in the final regulatory provisions.
The outcomes of the consultation will affect the future landscape of derivatives clearing in the EU.
Stakeholders wishing to find more information on the process of consultation as well as how to submit their comments shall do so using ESMA’s official channels for communication.
