The European Securities and Markets Authority has published an interim assessment of the Active Account Requirement under the European Market Infrastructure Regulation and the first annual report of the Joint Monitoring Mechanism. The interim report finds that implementation has reached broad coverage, with around 500 entities having notified ESMA and national competent authorities by February 2026, representing more than 90% of EU notional outstanding in the relevant derivatives markets. Available data point to higher clearing activity at EU central counterparties, especially among smaller entities and in some products, but the shift remains moderate and systemically important third-country central counterparties continue to dominate most AAR-related clearing. Notifications are spread across most member states, with the strongest representation in France, Germany and the Netherlands, and banks account for around half of notifying entities. ESMA found no operational issues in opening active accounts. Market share gains for EU CCPs were most visible in EUR forward rate agreements, Euribor futures and some EUR interest rate derivatives, while the share of initial margin posted by EU clearing members at Tier 2 CCPs relative to EU CCPs fell to 51% in the fourth quarter of 2025 from 58% in the fourth quarter of 2024, a change ESMA said requires further analysis. The JMM annual report adds that the EU clearing landscape remains heavily linked to cross-border markets, particularly the United States, where EU entities have considerable exposures to US CCPs and US firms play a significant role in EU and Tier 2 CCPs as clearing members, clients and service providers. It also highlights the expansion of asset classes and products cleared in the EU and reviews existing EU-wide stress testing relevant to the clearing ecosystem. As next steps, ESMA will develop a methodology for the AAR effectiveness assessment, may issue a targeted data request if needed, and plans a final comprehensive assessment in 2027 once fuller AAR reporting data are available.
European Securities and Markets Authority2026-07-06
European Securities and Markets Authority finds limited early migration to EU clearing under Active Account Requirement and issues first Joint Monitoring Mechanism report
ESMA’s interim report on the Active Account Requirement finds broad market coverage but only a modest early shift of clearing from Tier 2 CCPs to EU CCPs, with the clearest movement among smaller entities and in selected products. Its first Joint Monitoring Mechanism report says the EU clearing ecosystem remains strongly exposed to cross-border dependencies, especially with the United States. ESMA plans a fuller AAR effectiveness assessment in 2027.