ESMA consults on post-trade under EMIR 3
27 February 2026 Europe
Image: Julien_Eichinger/stock.adobe.com
The European Securities and Markets Authority (ESMA) has launched a consultation on post-trade risk reduction (PTRR) services.
According to the financial markets regulator, the consultation will look into the requirements of these services and how they can benefit from the conditioned exemption from the clearing obligation introduced under the European Market Infrastructure Regulation (EMIR 3).
ESMA is seeking feedback on several elements of the framework for the PTRR service providers to operate under the exemption, including transparency towards participants, algorithm safeguards, execution of PTRR exercises, and record keeping.
Finally, the consultation describes how monitoring should be conducted by the relevant authorities.
The draft regulatory technical standards (RTS) set out the requirements that PTRR services must meet for over-the-counter (OTC) derivative transactions to qualify for the exemption from the clearing obligation.
They focus on the three main service types in use in the market today: compression, portfolio rebalancing, and basis risk optimisation.
The technical standards are designed to ensure that the exemption is not used to circumvent the clearing obligation, while considering simplification and burden reduction objectives by leveraging on current practices since the start of the EMIR 3 regime.
In terms of next steps, stakeholders are invited to provide feedback on the proposals set out in the consultation by 20 April 2026. The draft RTS will be submitted to the European Commission in the fourth quarter of 2026.
According to the financial markets regulator, the consultation will look into the requirements of these services and how they can benefit from the conditioned exemption from the clearing obligation introduced under the European Market Infrastructure Regulation (EMIR 3).
ESMA is seeking feedback on several elements of the framework for the PTRR service providers to operate under the exemption, including transparency towards participants, algorithm safeguards, execution of PTRR exercises, and record keeping.
Finally, the consultation describes how monitoring should be conducted by the relevant authorities.
The draft regulatory technical standards (RTS) set out the requirements that PTRR services must meet for over-the-counter (OTC) derivative transactions to qualify for the exemption from the clearing obligation.
They focus on the three main service types in use in the market today: compression, portfolio rebalancing, and basis risk optimisation.
The technical standards are designed to ensure that the exemption is not used to circumvent the clearing obligation, while considering simplification and burden reduction objectives by leveraging on current practices since the start of the EMIR 3 regime.
In terms of next steps, stakeholders are invited to provide feedback on the proposals set out in the consultation by 20 April 2026. The draft RTS will be submitted to the European Commission in the fourth quarter of 2026.
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