ESMA consults on post-trade risk reduction services under EMIR 3
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on the requirements for how post-trade risk reduction (PTRR) services can benefit from the conditioned exemption from the clearing obligation introduced under the European Market Infrastructure Regulation (EMIR 3).
ESMA is seeking feedback on several elements of the framework for the PTRR service providers to operate under the exemption, including transparency towards participants, algorithm safeguards, execution of PTRR exercises, controls to be performed and record keeping. Finally, the consultation describes how monitoring should be conducted by the relevant authorities.
The draft Regulatory Technical Standards (RTS) set out the requirements that PTRR services must meet for over-the-counter (OTC) derivative transactions to qualify for the exemption from the clearing obligation. They focus on the three main service types in use in the market today: compression, portfolio rebalancing and basis risk optimisation.
The RTS are designed to ensure that the exemption is not used to circumvent the clearing obligation, while considering simplification and burden reduction objectives by leveraging on current practices since the start of the EMIR 3 regime.
Next steps
Stakeholders are invited to provide feedback on the proposals set out in the consultation by 20 April 2026. The draft RTS will be submitted to the European Commission in Q4 2026.
Further information:
Cristina Bonillo
Senior Communications Officer
press@esma.europa.eu