The European Supervisory Authorities published final draft Regulatory Technical Standards that would simplify bilateral margin requirements for counterparties below the European Market Infrastructure Regulation threshold of EUR 8 billion for exchanging initial margin on uncleared over-the-counter derivatives. The proposal would remove the requirement for these counterparties to exchange initial margin on both new and existing contracts. Under the current framework, counterparties below the threshold are exempt for new contracts but must continue exchanging initial margin for existing contracts. The draft standards have been submitted to the European Commission for endorsement and would subsequently be scrutinized by the European Parliament and the Council before publication in the Official Journal of the European Union.
European Insurance and Occupational Pensions Authority2026-08-03
European Supervisory Authorities propose ending initial margin exchanges below the EUR 8 billion threshold
The European Supervisory Authorities proposed ending initial margin exchanges on both new and existing uncleared derivatives contracts for counterparties below the EUR 8 billion threshold. The draft standards are awaiting European Commission endorsement before legislative scrutiny.