ESMA specifies requirements on post-trade risk reduction services
21 October 2026 Europe
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The European Securities and Markets Authority (ESMA) has outlined conditions for providers and users of post-trade risk reduction (PTRR) services.
Meeting these conditions allows for certain OTC derivative transactions to be exempt from the clearing obligation under the European Market Infrastructure Regulation (EMIR) 3.
The new rules, published in its latest final report, also establish safeguards for the provision of these services and the monitoring of the use of the exemption.
With these new rules in place, the goal is to facilitate the use of PTRR services and ensure that the exemption is used under the conditions laid down in EMIR 3, and does not lead to the misuse of the clearing obligation.
The final report specifies the elements and requirements of PTRR services, including the information to be provided to participants, how exercises are carried out, the controls that providers should have in place, record-keeping, and how the exemption will be monitored.
PTRR services help market participants manage their derivatives portfolios and reduce risks, thereby contributing to safer and more resilient derivatives markets, says ESMA.
The final rules build on existing market practices and aim to avoid introducing additional requirements where existing rules already meet the relevant objectives, in line with ESMA’s simplification and burden reduction objectives.
In terms of next steps, the draft regulatory technical standards will now be submitted to the European Commission for endorsement, in line with the standard review process.
Meeting these conditions allows for certain OTC derivative transactions to be exempt from the clearing obligation under the European Market Infrastructure Regulation (EMIR) 3.
The new rules, published in its latest final report, also establish safeguards for the provision of these services and the monitoring of the use of the exemption.
With these new rules in place, the goal is to facilitate the use of PTRR services and ensure that the exemption is used under the conditions laid down in EMIR 3, and does not lead to the misuse of the clearing obligation.
The final report specifies the elements and requirements of PTRR services, including the information to be provided to participants, how exercises are carried out, the controls that providers should have in place, record-keeping, and how the exemption will be monitored.
PTRR services help market participants manage their derivatives portfolios and reduce risks, thereby contributing to safer and more resilient derivatives markets, says ESMA.
The final rules build on existing market practices and aim to avoid introducing additional requirements where existing rules already meet the relevant objectives, in line with ESMA’s simplification and burden reduction objectives.
In terms of next steps, the draft regulatory technical standards will now be submitted to the European Commission for endorsement, in line with the standard review process.
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