The European Securities and Markets Authority has launched a consultation on draft Regulatory Technical Standards setting requirements for post-trade risk reduction services to benefit from the conditioned exemption from the European Market Infrastructure Regulation 3 clearing obligation for over-the-counter derivatives. The proposals cover the framework for PTRR service providers to operate under the exemption, including transparency to participants, algorithm safeguards, how PTRR exercises are executed, required controls and record keeping, and how competent authorities should monitor use of the exemption. The RTS focus on three service types currently used in the market: compression, portfolio rebalancing and basis risk optimisation, and are intended to prevent circumvention of the clearing obligation while leveraging existing market practices under EMIR 3. Feedback is requested by 20 April 2026, and ESMA expects to submit the final draft RTS to the European Commission in Q4 2026.
European Securities and Markets Authority 2026-02-26
European Securities and Markets Authority launches consultation on RTS for PTRR services to use EMIR 3 conditioned clearing exemption
The European Securities and Markets Authority has initiated a consultation on draft Regulatory Technical Standards for post-trade risk reduction services to qualify for an exemption from the European Market Infrastructure Regulation 3 clearing obligation for over-the-counter derivatives. The standards address transparency, algorithm safeguards, execution, controls, and monitoring for PTRR services, focusing on compression, portfolio rebalancing, and basis risk optimisation, aiming to prevent circumvention of the clearing obligation while aligning with existing market practices.