The European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority have finalized draft regulatory technical standards that would extend the initial margin exemption for non-centrally cleared over-the-counter derivatives. Where either counterparty has an aggregate month-end average notional amount below EUR 8 billion, the exemption would cover both new and existing contracts, allowing previously collected initial margin on outstanding contracts to be released. Counterparties could apply the exemption as early as June 1 of the year in which the average for March, April and May falls below the threshold, while retaining the option to continue collecting margin. If both counterparties exceed EUR 8 billion, initial margin would apply to new contracts no later than Jan. 1 of the following year. The draft also removes outdated transitional provisions for single-stock and equity-index options, which remain exempt from margin requirements under EMIR 3.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 Securities and Markets Authority2026-08-03
European Supervisory Authorities propose extending initial margin exemption to existing uncleared OTC contracts below EUR 8 billion threshold
The European Supervisory Authorities propose extending the initial margin exemption to existing as well as new uncleared OTC derivative contracts when either counterparty falls below the EUR 8 billion threshold. Counterparties could release collected initial margin and apply the exemption as early as June 1. The draft standards have been submitted to the European Commission for endorsement.