The European Securities and Markets Authority (ESMA) published draft Regulatory Technical Standards (RTS) setting new and revised clearing thresholds (CTs) under EMIR 3, aiming to maintain coverage of systemic risk in over-the-counter (OTC) derivatives while limiting added complexity and compliance burden. The final draft RTS have been submitted to the European Commission for endorsement. The package keeps five CT categories, clarifies when positions should be calculated by allowing counterparties to apply the new CTs within their usual assessment window or earlier, and adjusts the mechanism for triggering CT reviews to improve stability and visibility. Compared with the April 2025 consultation, ESMA proposes higher thresholds in commodity, interest rate and credit derivatives to reflect price developments, inflation and other market factors while maintaining proportionate systemic-risk coverage; it also notes that expanding the hedging exemption to cover structured hedging arrangements such as virtual power purchase agreements would require amendments at Regulation level and cannot be done via the RTS. Counterparties exceeding one or more CTs remain subject to additional requirements, including the clearing obligation. Following European Commission endorsement, the RTS will be subject to adoption.
European Securities and Markets Authority 2026-02-25
European Securities and Markets Authority publishes EMIR 3 draft RTS revising OTC derivatives clearing thresholds and submits them to the European Commission
The European Securities and Markets Authority (ESMA) has published draft Regulatory Technical Standards (RTS) under EMIR 3, setting new and revised clearing thresholds for over-the-counter derivatives to manage systemic risk. The RTS, submitted to the European Commission for endorsement, propose higher thresholds for commodity, interest rate, and credit derivatives, reflecting market changes. The draft also clarifies calculation timing and adjusts the mechanism for triggering threshold reviews.