The European Supervisory Authorities published a final report and draft regulatory technical standards proposing to extend the initial margin exemption for non-centrally cleared over-the-counter derivatives to outstanding contracts. Where either counterparty has an aggregate month-end average notional amount below EUR 8 billion, counterparties could stop collecting initial margin on both new and existing contracts and release margin already collected for outstanding trades. The threshold would be calculated using month-end amounts for March, April and May. Counterparties could apply the exemption as early as June 1 of that year, while those above the threshold would have until Jan. 1 of the following year to collect initial margin on new contracts. The amendments would also remove outdated transitional provisions for single-stock and equity-index options, which remain exempt from margin requirements under EMIR 3. The draft standards have been submitted to the European Commission for endorsement. They will then be subject to scrutiny by the European Parliament and the Council before publication in the Official Journal of the European Union.
European Banking Authority2026-08-03
European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority propose extending initial margin exemption to existing OTC derivatives below EUR 8 billion threshold
The European Supervisory Authorities propose exempting both new and existing non-centrally cleared OTC derivatives from initial margin where either counterparty falls below the EUR 8 billion threshold. The exemption could apply from June 1, with previously collected margin released. The draft standards now await European Commission endorsement and legislative scrutiny.