The European Securities and Markets Authority has published a supervisory briefing setting out its supervisory expectations for how counterparties should comply with and report on the representativeness obligation linked to the active account requirement (AAR), an area that has drawn heightened supervisory attention. The briefing is intended to promote supervisory convergence in the oversight of counterparties subject to the AAR. The document explains how firms should identify the most relevant subcategories of derivatives for the representativeness assessment and how they should report trades cleared to meet the obligation, and it includes an illustrative example of compliant reporting. The representativeness obligation requires relevant counterparties to clear a number of trades in their active accounts held at European Union central counterparties (CCPs), with those trades covering the most relevant subcategories and reflecting activity currently cleared at Tier 2 CCPs. Counterparties subject to the AAR representativeness obligation are expected to follow the guidance in the supervisory briefing to meet their regulatory obligations.
European Securities and Markets Authority 2026-02-20
European Securities and Markets Authority issues supervisory briefing on the active account requirement representativeness obligation
The European Securities and Markets Authority issued a supervisory briefing on counterparties' compliance with the representativeness obligation under the active account requirement (AAR). It aims to enhance supervisory convergence and includes guidance on identifying relevant derivative subcategories and reporting trades cleared at EU central counterparties. Counterparties are expected to adhere to this guidance to fulfill their regulatory obligations.